July 22, 2009 / 8:34 PM / in 9 years

CORRECTED - UPDATE 1-Alliance Data posts drop in 2nd-qtr profit

(Corrects fourth paragraph analysts’ estimate to $1.01 a share, not $1.34, as previously sent)

* Qrtly net income cut by more than a third, revenue down

* Cash earnings per share lower than analysts’ estimate

* Shares unchanged in after-market trade

NEW YORK, July 22 (Reuters) - Business services company Alliance Data Systems (ADS.N) posted a 37 percent drop in second-quarter profit on Wednesday, as revenue fell.

The Dallas-based company reported second-quarter net income of $29.4 million, or 51 cents a share, compared with $46.9 million, or 60 cents a share, a year ago.

Quarterly cash earnings, excluding amortization of intangible items and stock compensation expenses, fell 9 percent to 95 cents per share. Excluding foreign exchange movement by the Canadian dollar, ADS said its cash earnings per diluted share would have been 16 percent higher than a year ago at $1.21.

Analysts on average expected the company to earn $1.01 a share, excluding special items, according to Reuters Estimates.

Revenue fell to $460.4 million in the quarter from $507.2 million a year ago. Analysts had expected revenue of $481.80 million.

The company reiterated its full-year outlook of $5.15 in cash earnings per share, and said it currently expected cash earnings per share in the third quarter of $1.34, ten percent higher than a year ago.

ADS were unchanged in the after-hours market after closing down 0.7 percent at $47.60 in regular trading Wednesday ahead of the earnings report, which was issued after the market close. (Reporting by Lilla Zuill; Editing by Tim Dobbyn)

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