Alliance Data Systems Saw Strong Revenue Growth in 4Q15



Revenues rose 18% in 4Q15

On January 28, 2016, Alliance Data (ADS) announced its 4Q15 and full year 2015 results. In 4Q15, Alliance reported revenues of $1.8 billion, an 18% increase YoY (year-over-year) compared to revenues of $1.5 billion in 4Q14. Earnings per share (or EPS) rose 169% from $0.86 in 4Q14 to $2.31 in 4Q15.

As shown in the below chart, Alliance’s full year 2015 revenues rose 21% to $6.4 billion from $5.3 billion in 2014. Its EPS rose 12% as well from $7.87 to $8.82 in the same period.

Ed Heffernan, president and chief executive officer of Alliance Data, commented, “It was an exceptional year for Alliance Data as we drove 20 percent growth in both revenue and core EPS despite substantial FX headwinds. Overall, the scorecard for all three segments is largely positive.”

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Alliance beat earnings estimates

Analysts estimated earnings per share of $4.11 and ADS beat estimates by 0.5%. The company has a market cap of $11.9 billion. Its peer companies include American Express (AXP), Discover Financial Services (DFS), and Fidelity National Information Services (FIS). AXP has a market cap of $52.8 billion, whereas DFS and FIS have market caps of $19.2 billion and $16.8 billion, respectively.

American Express constitutes 2% of the Financial Select Sector SPDR Fund (XLF).


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