Read Larry Connors' blog – Short Term Trading Strategies
The Dallas, Texas-based company's third quarter net income declined to $45.8 million or $0.83 per share from $64.8 million or $0.93 per share in the prior year quarter. Cash earnings were $77.1 million or $1.40 per share, down from $85.0 million or $1.22 per share a year ago.
On average, eighteen analysts polled by Thomson Reuters expected the company to earn $1.34 per share for the quarter. Analysts' estimates typically exclude special items.
Alliance's quarterly revenue slipped 5% to $483.2 million from $511.2 million in the previous year quarter. Excluding changes in the foreign exchange rate for the Canadian dollar, revenue would have been $493 million, representing a 4% decline year on year. Analysts were looking for revenues of $500.22 million for the quarter.
Ed Heffernan, president and chief executive officer, said the company faced three major headwinds this year: higher credit losses, foreign exchange rate fluctuations and an interest only strip gain grow-over. Credit loss rates increased over 200 basis points since 2008, equating to $90 million, followed by impacts from foreign exchange and an interest only strip gain grow-over of $40 million and $30 million, respectively.
"In our Loyalty Services segment, specifically our Canadian AIR MILES Reward Program, our key cash flow metric, miles issued, continued to ramp up from a 4-percent decline in the first quarter and a 2-percent decline in the second quarter to a positive 3-percent growth rate in the third quarter," Heffernan added.
In the Private Label Credit business, growth rate in credit sales moved from a negative performance in 2008 to growth of 3%, 6% and 13% in the first, second and third quarters of 2009 respectively.
Segment wise, Loyalty Services revenue declined 6% to $177 million from $187 million a year ago. Growth is expected to further accelerate in the fourth quarter of 2009 as the business anniversaries its first soft quarter in reward miles issued.
Epsilon Marketing Services segment revenue increased slightly to $132 million from $131 million in the prior year period. The fourth quarter is expected to deliver solid growth and Epsilon remains on track to deliver single digit growth for the year, the company said.
Private Label Services revenue rose to $96.8 million from $94.7 million in the same period last year, while Private Label Credit segment revenue slipped to $165.2 million from $182.4 million last year. Private Label is expected to return to positive performance in the fourth quarter.
Year-to-date, the company posted net income of $103.1 million or $1.78 per share, down from $161.1 million or $2.12 per share in the corresponding period last year. Revenues for the nine-month period totaled $1.424 billion, compared to $1.518 billion a year ago.
Backing its prior guidance for 2009, the company continues to expect strong double-digit earnings growth of about $5.15 cash earnings per share, an increase of 17% over the prior year. The Street currently expects earnings of $5.05 per share for the year.
For 2010, the company anticipates revenue of $2.15 billion, and cash earnings of $6.00 per share. Analysts project earnings of $6.10 per share on revenue of $2.18 billion for the year 2010.
ADS closed Wednesday's regular trading at $67.26, down $0.27 or 0.40%, on a volume of about 1.31 million shares. In after hours, the stock further lost $4.26 or 6.33% and traded at $63.00. For the 52-week period, the stock moved between $22.76 and $66.09, on a 3-month average volume of about 1.52 million shares.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
