Epsilon, a subsidiary of Alliance Data Systems Corporation (ADS) inked a new multi-year agreement with Miami based Norwegian Cruise Line, to provide services, technology and expertise to support the latter’s customer acquisition and retention.

The agreement requires Epsilon to administer the customer database, provide analytics, marketing strategy support and data services. Also, Epsilon will support Norwegian Cruise Line to boost consumer interest as well as demand for their product, by delivering more personalized experiences to the guests and improve brand loyalty.

In 2010, the Epsilon segment recorded 19% growth in revenue. The segment is continually benefiting from several significant launches, Abacus (a large catalog coalition database) and acquisition of the Direct Marketing Services division of Equifax. We expect this transaction will help it to generate additional revenue and help the segment to continue delivering robust growth going forward.

Alliance Data reported adjusted earnings of $1.56 per share for fourth-quarter 2010, beating the Zacks Consensus estimate by 25 cents.

During the fourth quarter conference call, Alliance Data projected single-digit growth in revenues and guided core earnings to $1.65 per share in first quarter 2011. The Zacks Consensus Estimate for first-quarter 2011 is $1.51 per share.

For fiscal 2011, Alliance Data expects revenues of $3 billion and adjusted earnings of $6.18 per share. The Zacks Consensus Estimate for first-quarter 2011 is $7.22 per share.

The company remains poised to fare well in the upcoming quarters based on continued strong performance across the segment, solid financial position and focus on boosting shareholder value.

The quantitative Zacks #3 Rank (short-term Hold rating) for Alliance Data indicates no clear directional pressure on the stock over the near term.

Headquartered in Dallas, Texas, Alliance Data Systems Corporation, together with its subsidiaries, provides data-driven and transaction-based marketing and customer loyalty solutions primarily in the United States and Canada. It competes with Discover Financial Services(DFS).

 
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