Alliance Data expects strong sales to boost 1Q profits

Analysts polled by Thomson Financial expect profit of 99 cents per share.

In a Securities and Exchange Commission filing, the company said it anticipates profit of $1 per share for the second quarter, matching analyst expectations.

For the third quarter, it expects profit of $1.15 per share, also matching analyst forecasts.

Alliance also expects fourth-quarter profit to be less than $1.15 per share ,compared with $1.16 per share forecast by analysts.

For the 2008 fiscal year, it expects profit of $4.30 per share, also matching Wall St. expectations.

Dallas-based Alliance expects growth to double during the year, helped by sales of loyalty credit cards to retail consumers.

Alliance operates credit cards systems for retailers, supermarkets and other industries. Last May, investment firm Blackstone Group LP offered to buy the company for $6.6 billion. However Blackstone has sought to lower the offer price as credit market turmoil raised buyout costs. ADS rejected a lower purchase price last month.