It has been about a month since the last earnings report for Sabre (SABR Quick QuoteSABR - Free Report) . Shares have lost about 17.3% 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 the most recent earnings report in order to get a better handle on the important catalysts.

Sabre's Q3 Loss Narrower Than Expected, Sales Up Y/Y

Sabre 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.

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.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

At this time, Sabre has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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

Sabre has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.