How Will Alliance Data Systems (ADS) Stock React To Its Second Quarter Financial Results?

NEW YORK (TheStreet) -- Alliance Data Systems Corp. (ADS) released its 2014 second quarter results and posted a 23% increase in revenue to $1.27 billion versus $1.03 billion from the year ago quarter.

The company, which provides transaction-based, data driven marketing and loyalty solutions for customers in various industries, said adjusted EBITDA increased 8% to $332 million for the 2014 second quarter, compared to $306 million from the 2013 second quarter.

Alliance Data Systems' earnings per share for the most recent quarter were up 20% to $2.90, from $2.41 for the 2013 second quarter.

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Alliance Data issued soft guidance for the 2014 third quarter, expecting approximately $1.30 billion in revenue and $3.25 in core EPS.

Analysts are expecting the company to report earnings per share of $3.49 on revenue of $1.35 billion next quarter.

Separately, 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 multiple 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, increase in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

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