Alliance Data Systems (ADS) reported Q3 2014 revenue of $1.3 billion, a 20% YoY change, mostly driven by the company’s private-label credit card services division, which saw 17% YoY revenue growth to $622 million.
ADS has steadily increased its outlook with each earnings call, and it did so again in its Q3, raising its core earnings per share (EPS) guidance by $.05 from Q2 2014.
ADS made a splash in the ad tech world when it agreed to acquire Conversant for $2.3 billion on behalf of its marketing data subsidiary Epsilon. Once the deal finalizes – ADS anticipates it’ll close by Jan. 1 – company President and CEO Ed Heffernan said he anticipates ADS revenue will increase 25% to $6.6 billion, raising core EPS to roughly $14.80 to $15, a 20% increase.
Heffernan emphasized this figure was just “a stake in the ground” and that ADS will refine the number.
Heffernan also noted growth in ADS’ other business units, including 52% YoY revenue growth to $324 million for airline loyalty program provider LoyaltyOne and 6% YoY revenue growth to $378 million for Epsilon. (more…)