Three Buy List Earnings Reports This Morning

This morning, Alliance Data Systems (ADS) reported Q3 earnings of $4.74 per share which easily beat the company’s expectation of $4.42 per share. Wall Street had been expecting $4.44 per share. Quarterly revenue rose 19% to $1.9 billion.

For the rest of the year, the company sees revenue of $7.2 billion and core EPS of $16.90 per share. That translates to Q4 guidance of $1.9 billion in revenue and core EPS of $4.64. Wall Street had been expecting $4.93 per share.

The initial guidance for 2017 is for 10% growth in revenue and core EPS. ADS also initiated a dividend of 52 cents per share. That comes to a yield of about 1%. The shares are currently down about 2%.

Signature Bank (SBNY) reported Q3 earnings of $2.11 per share. That beat Wall Street’s estimate of $2.04 per share. The bank’s net interest margin was 3.14% which is down eight basis points from last year.

SBNY said they took “significant measures” to put the Chicago medallion loans behind them. Deposits for the quarter rose 6.1% to $31.4 billion. The shares are currently down about 4% in today’s trading.

Snap-on (SNA) is making its bid to be the star of this earnings season. For Q3, the company said it made $2.22 per share. That beat expectations by seven cents per share. Quarterly revenue rose 1.5% to $834.1 million which was below expectations.

For their outlook, Snap-on said:

Snap-on expects to make continued progress during the balance of 2016 along its defined runways for coherent growth, leveraging capabilities already demonstrated in the automotive repair arena and developing and expanding its professional customer base, not only in automotive repair, but also in adjacent markets, additional geographies and other areas, including in critical industries, where the cost and penalties for failure can be high. In pursuit of these initiatives, Snap-on now anticipates that capital expenditures in 2016 will approximate $80 million, of which $56.6 million was incurred through the end of the third quarter. Snap-on presently expects that its full year 2016 effective income tax rate will be slightly below its full year 2015 rate.

The stock has been up as much as 9.1% today.

Posted by on October 20th, 2016 at 10:33 am


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