Does Earnings Surprise History Hold Any Clue for Alliance Data Systems (NYSE:ADS)

Earnings results for Alliance Data Systems (NYSE:ADS)

Alliance Data Systems Corporation is expected* to report earnings on 04/29/2021 before market open. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 15 analysts’ forecasts, the consensus EPS forecast for the quarter is $3.18. The reported EPS for the same quarter last year was $0.67.

Alliance Data Systems last posted its quarterly earnings results on January 27th, 2021. The business services provider reported $3.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.41 by $0.90. The company earned $1.11 billion during the quarter, compared to analyst estimates of $1.13 billion. Its quarterly revenue was down 24.0% on a year-over-year basis. Alliance Data Systems has generated $16.39 earnings per share over the last year and currently has a price-to-earnings ratio of 15.5. Alliance Data Systems has confirmed that its next quarterly earnings report will be published on Thursday, April 29th, 2021.

Analyst Opinion on Alliance Data Systems (NYSE:ADS)

14 Wall Street analysts have issued ratings and price targets for Alliance Data Systems in the last 12 months. Their average twelve-month price target is $154.21, predicting that the stock has a possible upside of 43.00%. The high price target for ADS is $950.00 and the low price target for ADS is $45.00. There are currently 1 sell rating, 5 hold ratings and 8 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Alliance Data Systems has received a consensus rating of Buy. The company’s average rating score is 2.50, and is based on 8 buy ratings, 5 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $154.21, Alliance Data Systems has a forecasted upside of 43.0% from its current price of $107.84. Alliance Data Systems has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Alliance Data Systems (NYSE:ADS)

Alliance Data Systems has a dividend yield of 0.80%, which is in the bottom 25% of all stocks that pay dividends. Alliance Data Systems has only been increasing its dividend for 1 years. The dividend payout ratio of Alliance Data Systems is 5.13%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Alliance Data Systems will have a dividend payout ratio of 6.97% next year. This indicates that Alliance Data Systems will be able to sustain or increase its dividend.

Insiders buying/selling: Alliance Data Systems (NYSE:ADS)

In the past three months, Alliance Data Systems insiders have not sold or bought any company stock. Only 2.10% of the stock of Alliance Data Systems is held by insiders. 79.38% of the stock of Alliance Data Systems is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Alliance Data Systems (NYSE:ADS

Earnings for Alliance Data Systems are expected to grow by 43.45% in the coming year, from $8.40 to $12.05 per share. The P/E ratio of Alliance Data Systems is 15.47, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 23.88. The P/E ratio of Alliance Data Systems is 15.47, which means that it is trading at a less expensive P/E ratio than the Business Services sector average P/E ratio of about 35.29. Alliance Data Systems has a PEG Ratio of 1.93. PEG Ratios above 1 indicate that a company could be overvalued. Alliance Data Systems has a P/B Ratio of 3.13. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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