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Alliance Data revenue climbs YOY in Q2

Alliance DataSystems Corp. reported second-quarter net income attributable tocommon shareholders of $140.7 million, or $1.24 per share, compared with $131.3million, or $2.11 per share, in the prior-year period.

Core earnings attributable to common shareholders stood at$217.4 million, or $3.68 per share, compared with $206.9 million, or $3.32 pershare, in the year-ago quarter.

The S&P Capital IQ consensus normalized EPS estimate forthe quarter was $3.59.

Revenue rose to $1.75 billion in the second quarter from$1.50 billion in the prior-year quarter.

The company said unfavorable foreign exchange rates reducedrevenue and core EPS by less than 1% compared with the second quarter of 2015.

Adjusted EBITDA, net of funding costs and noncontrollinginterest, was $421.5 million in the second quarter, compared with $392.5million in the year-ago period.

Alliance Data revised its guidance for 2016, with revenue now expected to be $7.15billion, an increase from the previous outlook of $7.1 billion. Core EPS is nowanticipated to be $16.85, up from the previous guidance of $16.75.

The S&P Capital IQ consensus normalized EPS estimate for2016 is $16.84.

The company expects $1.78 billion in revenue and $4.42 incore EPS for the third quarter.

The S&P Capital IQ consensus normalized EPS estimate forthe third quarter is $4.53.

Alliance Data President and CEO Ed Heffernan said the companyhas acquired the final 20% stake in BrandLoyalty during the second quarter for approximately$259 million. He also said the company repurchased approximately 2.6 millionshares year-to-date.