Alliance Data's October Receivables In Card Business Up

Alliance Data Systems Corporation (NYSE:ADS) reported an increase in average receivables in its Card Services segment for the month of Oct 2016.

The Plano, TX-based company recorded average receivables of $14.60 billion for the month, up 22% year over year. For the 10-month period ended Oct 2016, average receivables increased 24% year over year to $13.77 billion.

Net charge-offs came in at $66.99 million for the reported month, while for the ten-month period ended Oct 2016, net charge-offs were $580.23 million.

As a percentage of average receivables, net charge-offs for the month and the ten-month period ended Oct 2016, was 5.5% and 5.1%, respectively, compared to 5.0% and 4.5%, respectively, in the prior-year period. The company remains focused on its full-year 2016 guidance of a 5.0% principal loss rate.

In the release, Alliance Data stated that the net loss rate for the month is in line with maintaining its full-year guidance of $7.2 billion in total revenue and core EPS of $16.90. This reflects year-over-year increases of 11% and 12%, respectively.

Currently, Alliance Data carries a Zacks #3 (Hold).

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