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Sabre's (SABR) Q3 Loss Narrower Than Expected, Sales Up Y/Y
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Sabre Corporation (SABR - Free Report) reported a narrower-than-expected loss for third-quarter 2021. The company’s adjusted loss per share of 50 cents came in much narrower than the Zacks Consensus Estimate of a loss of 59 cents. The quarterly adjusted loss is also way narrower than the year-ago quarter’s 81 cents per share.
The company recorded revenues of $441 million for the quarter, significantly higher than the revenues of $278 million posted in the year-ago quarter, when the COVID-19 pandemic caused disruptions in the global travel industry. This year-over-year surge in the top line reflects the continued gradual recovery in the global air, hotel and other bookings. However, the top-line figure missed the Zacks Consensus Estimate of $457 million.
Revenue Details
The Travel Solutions segment’s revenues increased to $390 million from the year-ago quarter’s $237 million, mainly on the gradual recovery in the global air and other bookings.
Sabre Corporation Price, Consensus and EPS Surprise
Distribution (sub-division of Travel Solutions) revenues improved to $245 million from the $105 million seen in third-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 came in at $145 million, up from the year-ago quarter’s $132 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 115.58 million from 56.97 million.
The Hospitality Solutions segment’s revenues totaled $55 million compared with the year-ago quarter’s $45 million. This upside was mainly fueled by the continued gradual recovery in central reservation system transactions and higher Digital Experience revenues.
The company reported an adjusted operating loss of $103 million, significantly narrower than the operating loss of $197 million posted in the year-earlier period.
Balance Sheet and Cash Flow
Sabre ended the third quarter with cash and cash equivalents of $1.02 billion compared with the previous quarter’s $1.12 billion.
During the quarter, the company used $69.7 million of cash for operational activities and generated negative free cash flow of $82.9 million. In the first nine months of 2021, it used $408.2 million of cash for operational activities and generated negative free cash flow of $438.6 million.
The long-term earnings growth rate for Applied Materials, Advanced Micro Devices and Perficient is currently pegged at 19.4%, 44.6% and 18%, respectively.
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Sabre's (SABR) Q3 Loss Narrower Than Expected, Sales Up Y/Y
Sabre Corporation (SABR - Free Report) reported a narrower-than-expected loss for third-quarter 2021. The company’s adjusted loss per share of 50 cents came in much narrower than the Zacks Consensus Estimate of a loss of 59 cents. The quarterly adjusted loss is also way narrower than the year-ago quarter’s 81 cents per share.
The company recorded revenues of $441 million for the quarter, significantly higher than the revenues of $278 million posted in the year-ago quarter, when the COVID-19 pandemic caused disruptions in the global travel industry. This year-over-year surge in the top line reflects the continued gradual recovery in the global air, hotel and other bookings. However, the top-line figure missed the Zacks Consensus Estimate of $457 million.
Revenue Details
The Travel Solutions segment’s revenues increased to $390 million from the year-ago quarter’s $237 million, mainly on the gradual recovery in the global air and other bookings.
Sabre Corporation Price, Consensus and EPS Surprise
Sabre Corporation price-consensus-eps-surprise-chart | Sabre Corporation Quote
Distribution (sub-division of Travel Solutions) revenues improved to $245 million from the $105 million seen in third-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 came in at $145 million, up from the year-ago quarter’s $132 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 115.58 million from 56.97 million.
The Hospitality Solutions segment’s revenues totaled $55 million compared with the year-ago quarter’s $45 million. This upside was mainly fueled by the continued gradual recovery in central reservation system transactions and higher Digital Experience revenues.
The company reported an adjusted operating loss of $103 million, significantly narrower than the operating loss of $197 million posted in the year-earlier period.
Balance Sheet and Cash Flow
Sabre ended the third quarter with cash and cash equivalents of $1.02 billion compared with the previous quarter’s $1.12 billion.
During the quarter, the company used $69.7 million of cash for operational activities and generated negative free cash flow of $82.9 million. In the first nine months of 2021, it used $408.2 million of cash for operational activities and generated negative free cash flow of $438.6 million.
Zacks Rank & Stocks to Consider
Sabre currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials (AMAT - Free Report) , Advanced Micro Devices (AMD - Free Report) and Perficient (PRFT - 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 Applied Materials, Advanced Micro Devices and Perficient is currently pegged at 19.4%, 44.6% and 18%, respectively.