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Why Is Sabre (SABR) Down 10.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Sabre (SABR - Free Report) . Shares have lost about 10.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sabre due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Sabre Q4 Loss Narrower Than Expected, Sales Up Y/Y
Sabre reported a narrower-than-expected loss for fourth-quarter 2021. The company’s adjusted loss per share of 47 cents came in narrower than the Zacks Consensus Estimate of a loss of 49 cents. The quarterly adjusted loss is also narrower than the year-ago quarter’s 80 cents per share.
Sabre delivered revenues of $501 million in the fourth quarter, significantly higher than revenues of $314 million posted in the year-ago quarter and surpassed the Zacks Consensus Estimate of $475.5 million as well. This year-over-year surge in the top line reflects the continued gradual recovery in the global air, hotel and other bookings.
Top Line Details
The Travel Solutions segment’s revenues increased to $450.9 million from the year-ago quarter’s $275.8 million, primarily on the gradual recovery in the global air and other bookings.
Distribution (sub-division of Travel Solutions) revenues improved to $286 million from $130.9 million witnessed in fourth-quarter 2020, chiefly driven by favorable comparison of the prior-year quarter’s significant cancellation activities and gradual recovery in bookings.
IT Solution (sub-division of Travel Solutions) revenues were $164.9 million, up from the year-ago quarter’s $144.9 million. This increase was primarily driven by the gradual recovery in the passengers boarded. Number of boarded airline passengers — a key revenue metric for the IT Solutions division — increased to 129.4 million from 78.6 million.
The Hospitality Solutions segment’s revenues totaled $54.5 million compared with the year-ago quarter’s $41.5 million. This upside was mainly fueled by the continued gradual recovery in central reservation system transactions and higher Digital Experience revenues. Central reservation system transactions rose 23.5 million from 15.7 million.
Sabre reported an adjusted operating loss of $68 million, significantly narrower than the operating loss of $169 million posted in the year-earlier period.
Adjusted EBITDA improved from negative $101 million reported a year ago to negative $26 million. This improvement was driven by an increase in revenues and a decline in provision for anticipated credit loss.
Balance Sheet and Cash Flow
Sabre ended the fourth quarter with cash, cash equivalents and restricted cash of $999.4 million compared with the previous quarter’s $1.04 billion.
During the quarter, the company utilized $7 million of cash for operational activities and generated a negative free cash flow of $30 million. In full-year 2021, Sabre used $415 million of cash for operational activities and generated a negative free cash flow of $469 million.
Full-Year Highlights
For full-year 2021, Sabre reported revenues of $1.7 billion, up 27% year over year.
The company reported a non-GAAP loss of $2.21 per share compared with 2020’s loss of $3.20 per share.
Adjusted operating loss came in at $459 million. Adjusted EBITDA was negative $261 million against negative $448 million reported in 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -40.63% due to these changes.
VGM Scores
Currently, Sabre has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Sabre has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Sabre (SABR) Down 10.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Sabre (SABR - Free Report) . Shares have lost about 10.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sabre due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Sabre Q4 Loss Narrower Than Expected, Sales Up Y/Y
Sabre reported a narrower-than-expected loss for fourth-quarter 2021. The company’s adjusted loss per share of 47 cents came in narrower than the Zacks Consensus Estimate of a loss of 49 cents. The quarterly adjusted loss is also narrower than the year-ago quarter’s 80 cents per share.
Sabre delivered revenues of $501 million in the fourth quarter, significantly higher than revenues of $314 million posted in the year-ago quarter and surpassed the Zacks Consensus Estimate of $475.5 million as well. This year-over-year surge in the top line reflects the continued gradual recovery in the global air, hotel and other bookings.
Top Line Details
The Travel Solutions segment’s revenues increased to $450.9 million from the year-ago quarter’s $275.8 million, primarily on the gradual recovery in the global air and other bookings.
Distribution (sub-division of Travel Solutions) revenues improved to $286 million from $130.9 million witnessed in fourth-quarter 2020, chiefly driven by favorable comparison of the prior-year quarter’s significant cancellation activities and gradual recovery in bookings.
IT Solution (sub-division of Travel Solutions) revenues were $164.9 million, up from the year-ago quarter’s $144.9 million. This increase was primarily driven by the gradual recovery in the passengers boarded. Number of boarded airline passengers — a key revenue metric for the IT Solutions division — increased to 129.4 million from 78.6 million.
The Hospitality Solutions segment’s revenues totaled $54.5 million compared with the year-ago quarter’s $41.5 million. This upside was mainly fueled by the continued gradual recovery in central reservation system transactions and higher Digital Experience revenues. Central reservation system transactions rose 23.5 million from 15.7 million.
Sabre reported an adjusted operating loss of $68 million, significantly narrower than the operating loss of $169 million posted in the year-earlier period.
Adjusted EBITDA improved from negative $101 million reported a year ago to negative $26 million. This improvement was driven by an increase in revenues and a decline in provision for anticipated credit loss.
Balance Sheet and Cash Flow
Sabre ended the fourth quarter with cash, cash equivalents and restricted cash of $999.4 million compared with the previous quarter’s $1.04 billion.
During the quarter, the company utilized $7 million of cash for operational activities and generated a negative free cash flow of $30 million. In full-year 2021, Sabre used $415 million of cash for operational activities and generated a negative free cash flow of $469 million.
Full-Year Highlights
For full-year 2021, Sabre reported revenues of $1.7 billion, up 27% year over year.
The company reported a non-GAAP loss of $2.21 per share compared with 2020’s loss of $3.20 per share.
Adjusted operating loss came in at $459 million. Adjusted EBITDA was negative $261 million against negative $448 million reported in 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -40.63% due to these changes.
VGM Scores
Currently, Sabre has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Sabre has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.