Back to top

Image: Bigstock

Sabre's (SABR) Loss Wider Than Expected in Q2, Revenues Fall

Read MoreHide Full Article

Sabre Corporation (SABR - Free Report) reported wider-than-expected loss for second-quarter 2020. The company’s adjusted loss per share of $1.30 came in much wider than the Zacks Consensus Estimate of loss of 78 cents. The bottom-line figure also compared unfavorably with the year-ago quarter’s earnings of 24 cents per share.

The company’s revenues plunged to $83 million from the $1 billion reported in the second quarter of 2019. Moreover, the top-line figure missed the Zacks Consensus Estimate of $178 million. Revenues were primarily affected by significant reductions in air, hotel and other travel bookings due to the coronavirus pandemic’s adverse impact on the global travel industry.

Revenue Details

Travel Network revenues came in at negative $33 million mainly due to net negative bookings in the quarter, as cancellations exceeded new bookings. The Global Distribution System environment witnessed a slump of 105% on higher cancellations than new bookings. Net air bookings were also negative due to higher cancellations.

Airline Solutions revenues came in at $90 million, down 58% from the year-ago quarter, primarily on a 75% decline in reservation revenues, and 32% in commercial and operations revenues.

Sabre Corporation Price, Consensus and EPS Surprise

Sabre Corporation Price, Consensus and EPS Surprise

Sabre Corporation price-consensus-eps-surprise-chart | Sabre Corporation Quote

Hospitality Solution revenues plummeted 61% year over year to $29 million on a 62% decline in central reservation system transactions.

The company reported an adjusted gross loss of $129 million, as against the adjusted gross profit of $350.4 million recorded in the year-ago quarter.

Adjusted operating loss was $306.8 million in the June-end quarter as against the operating income of $127 million in the year-earlier period.

Balance Sheet and Cash Flow

Sabre ended the second quarter with cash and cash equivalents of $1.31 billion compared with the previous quarter’s $684.5 million.

During the first half of 2020, the company used $395 million of cash for operational activities.

Zacks Rank and Key Picks

Currently, Sabre carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader technology sector include Benefitfocus , Cogent Communications Holdings (CCOI - Free Report) and Synaptics (SYNA - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term earnings growth rate for Benefitfocus, Cogent and Synaptics is currently pegged at 30%, 10.6%, and 10%, respectively.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Synaptics Incorporated (SYNA) - free report >>

Sabre Corporation (SABR) - free report >>

Cogent Communications Holdings, Inc. (CCOI) - free report >>

Published in