Alliance Data Systems Corporation
) is set to report first-quarter 2014 results on April 17. Last
quarter, the company had posted a surprise of 2.29%. Let's
see how things are shaping up for this announcement.
Growth Factors this Past Quarter
Alliance Data's inorganic story seems impressive. With solid
financial strength and flexibility, we expect Alliance Data to
pursue strategic acquisitions that would help it ramp up its
The dotz coalition loyalty program in Brazil continued its
national rollout. dotz now operates in 9 regional markets with
more than 10 million collectors enrolled under the program. The
company aims to enter four additional Brazilian markets by 2014.
Continued share buyback, resulting in lower share count will also
aid the bottom line.
Our proven model does not conclusively show that Alliance Data is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
: ESP for Alliance Data is -0.77%. This is because the Most
Accurate estimate stands at $2.57 and the Zacks Consensus
Estimate stand at $2.59.
: Alliance Data's Zacks Rank #2 (Buy) when combined with a
negative earnings ESP makes surprise prediction difficult. We
caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is witnessing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
VeriFone Systems, Inc.
), earnings ESP of +4.76% and a Zacks Rank #3 (Hold).
The ADT Corporation
), earnings ESP of +4.55% and a Zacks Rank #3.
On Assignment Inc
), earnings ESP of +7.69% and a Zacks Rank #3.
ALLIANCE DATA (ADS): Free Stock Analysis
ADT CORP (ADT): Free Stock Analysis Report
ON ASSIGNMENT (ASGN): Free Stock Analysis
VERIFONE SYSTMS (PAY): Free Stock Analysis
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