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Sabre (SABR) Q1 Loss Narrower Than Expected, Sales Up Y/Y

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Sabre SABR reported a narrower-than-expected loss for first-quarter 2022. The company’s adjusted loss per share of 29 cents versus the Zacks Consensus Estimate of a loss of 38 cents. The figure was also narrower than the year-ago quarter’s 72 cents per share.

Sabre reported revenues of $584.9 million for the first quarter, which is significantly higher than the $327 million posted in the year-ago period and surpassed the Zacks Consensus Estimate of $564.2 million. This year-over-year surge in the top line reflects a gradual recovery in global air, hotel and other bookings.

Top-Line Details

The Travel Solutions segment’s revenues increased to $534 million from the year-ago quarter’s $288.9 million, primarily on the gradual recovery in global air and other bookings.

Distribution (sub-division of Travel Solutions) revenues improved to $342.9 million from $151.8 million in first-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 $191.1 million, up from the year-ago quarter’s $137.1 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 129.2 million from 75.2 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 $56 million compared with the year-ago quarter’s $42.2 million. This upside was mainly fueled by the gradual recovery in central reservation system transactions and higher Digital Experience revenues. Central reservation system transactions rose to 23 million from 17.6 million in the year-ago quarter.

Sabre reported an adjusted operating loss of $29.2 million, significantly narrower than the operating loss of $166.5 million posted in the year-earlier period.

Adjusted EBITDA improved from a negative $110 million reported a year ago to $5.2 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 March-end quarter with cash, cash equivalents and restricted cash of $1.21 billion compared with the previous quarter’s $999.4 million.

During the first quarter, the company utilized $139.1 million of cash for operational activities and generated a negative free cash flow of $156.5 million.

Zacks Rank & Key Picks

Sabre currently carries a Zacks Rank #3 (Hold). Shares of SABR have plunged 27.5% in the past year.

Some better-ranked stocks from the broader Computer and Technology sector include Avnet AVT, Gogo GOGO and Analog Devices ADI. While Avnet and Gogo sport a Zacks Rank #1 (Strong Buy), Analog Devices carry a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past seven days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past seven days.

Avnet's earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 21.2%. Shares of AVT have increased 5.6% in the past year.

The Zacks Consensus Estimate for Gogo's first-quarter 2022 earnings has been revised downward by a penny to 13 cents per share over the past 30 days. For 2022, Gogo's earnings estimates have moved 25% north to 65 cents per share in the past 60 days.

Gogo's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 65%. Shares of GOGO have soared 74.6% in the past year.

The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised upward by 4 cents to $2.12 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 11 cents to $8.43 per share in the past 30 days.

Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 6%. Shares of ADI have increased 4.6% in the past year.


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