The Retail Service business of
Alliance Data Systems Corp
) inked a long-term deal to provide private label credit card
services for El Dorado Furniture.
U.S.-based furniture retailer El Dorado operates 12 stores in
Dade, Broward and Palm Beach counties in southern Florida.
As per the agreement, Alliance Data will provide credit and
marketing services for the El Dorado Furniture Credit Card
program. It will also provide customers with customized financing
and payment alternative. Additionally, Alliance Data will be
providing mobile marketing solutions to El Dorado in order to
promote mobile technology at point-of-sale.
To date, this is the third long-term agreement in the second
quarter of 2013 under Alliance's Private Label Services and
Credit segment. The company has also signed an agreement under
its LoyaltyOne segment.
The Private Label Services and Credit segment has continuously
delivered solid numbers. We believe that winning new deals along
with the renewal of the existing ones will further enhance its
performance. The segment's revenues in the first quarter of 2013
improved 22% year over year, while operating income surged
Alliance Data expects core earnings per share to be at $9.75, up
12% year over year. The Zacks Consensus Estimate for 2013 is
currently pegged at $9.39, lower than the company's guidance. It
also represents a year-over-year improvement of 14.6%.
Alliance Data currently carries a Zacks Rank #3 (Hold). Among
other financial transaction service providers,
) -- Zacks Rank #1 (Strong Buy),
) -- Zacks Rank #2 (Buy) and
Fidelity National Information Services, Inc
) -- Zacks Rank #2 (Buy), appear impressive and are worth
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