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Sabre (SABR) Posts Narrower-Than-Expected Q2 Loss, Sales Up Y/Y

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Sabre Corporation SABR reported a narrower-than-expected loss for second-quarter 2022. The company’s adjusted loss per share was 25 cents compared with the Zacks Consensus Estimate of a loss of 35 cents. The figure was also narrower than the year-ago quarter’s loss of 52 cents per share.

Sabre reported revenues of $658 million for the second quarter, which is significantly higher than the $419.7 million in the year-ago period and surpassed the Zacks Consensus Estimate of $639.4 million. This year-over-year surge in the top line reflects a significant improvement in global air bookings among hotel and other bookings.

Top-Line Details

The Travel Solutions segment’s revenues increased to $599.1 million from the year-ago quarter’s $373.4 million, primarily on the gradual recovery in global air and other bookings.

Distribution (sub-division of Travel Solutions) revenues improved to $431.5 million from $218.2 million in second-quarter 2021, chiefly driven by the gradual recovery in bookings and an increase in average booking fee due to a shift in bookings mix.

IT Solution (sub-division of Travel Solutions) revenues were $167.6 million, up from the year-ago quarter’s $155.1 million. This increase was primarily driven by the gradual recovery in the passengers boarded. The number of boarded airline passengers — a key revenue metric for the IT Solutions division — increased to 160.2 million from 103.7 million in the prior-year quarter.

 

Sabre Corporation Price, Consensus and EPS Surprise

Sabre Corporation Price, Consensus and EPS Surprise
Sabre Corporation Price, Consensus and EPS Surprise

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

The Hospitality Solutions segment’s revenues totaled $66.2 million compared with the year-ago quarter’s $50.8 million. This upside was mainly fueled by the increase in central reservation system transactions and higher Digital Experience revenues. Central reservation system transactions rose to 29.5 million from 24 million in the year-ago quarter.

Sabre reported an adjusted operating loss of $9 million, significantly narrower than the operating loss of $122 million posted in the year-earlier period.

Adjusted EBITDA improved from a negative $70 million reported a year ago to $24 million. This improvement was driven by an increase in revenues and a decline in the provision for anticipated credit loss.

Balance Sheet and Cash Flow

Sabre exited the June-end quarter with cash, cash equivalents and restricted cash of $1.01 billion compared with the previous quarter’s $1.21 billion.

During the second quarter, the company utilized $73 million of cash for operational activities and generated a negative free cash flow of $89 million.

Zacks Rank & Key Picks

Sabre currently carries a Zacks Rank #3 (Hold). Shares of SABR have plunged 37.8% in the past year.

Some better-ranked stocks from the broader Computer and Technology sector are Taiwan Semiconductor TSM, Clearfield CLFD and Silicon Laboratories SLAB, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Taiwan Semiconductor's third-quarter 2022 earnings has been revised 10 cents northward to $1.70 per share over the past 30 days. For 2022, earnings estimates have moved 37 cents north to $6.30 per share in the past 30 days.

TSM's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.9%. Shares of the company have decreased 27.3% in the past year.

The Zacks Consensus Estimate for Clearfield's fourth-quarter fiscal 2022 earnings has been revised upward by 10 cents to 80 cents per share over the past seven days. For fiscal 2022, earnings estimates have moved 36 cents north to $3.13 per share in the past seven days.

Clearfield’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 33.9%. Shares of CLFD have soared 138.3% in the past year.

The Zacks Consensus Estimate for Silicon Laboratories’ third-quarter 2022 earnings has increased 22.9% to $1.02 per share over the past seven days. For 2022, earnings estimates have moved 14.2% up to $4.18 per share in the past seven days.

Silicon Laboratories’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 63.6%. Shares of SLAB have decreased 3.8% in the past year.


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