Why Alliance Data Systems (ADS) Stock Is Down Today

NEW YORK (TheStreet) -- Alliance Data Systems (ADS) stock is tumbling on Thursday after the company recorded guided for a lower-than-expected second quarter and full year. 

By early afternoon, shares had taken off 5.3% to $250.11.

For its June-ending second quarter, the company expects around $1.25 billion in revenue and earnings of $2.70 a share. Analysts surveyed by Thomson Reuters forecast revenue of $1.24 billion and earnings of $2.93 a share. 

For fiscal 2014 ending December, Alliance said it expects revenue of $5.25 billion, higher than analysts' estimates of $5.2 billion. However, earnings guidance of $12.25 a share came in lower than an expected $12.30 a share. 

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TheStreet Ratings team rates ALLIANCE DATA SYSTEMS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALLIANCE DATA SYSTEMS CORP (ADS) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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