Sabre hits turbulence
Meanwhile, shares of Sabre fell 12%. The global travel technology specialist's fourth-quarter financial report failed to live up to high expectations, given the rebound in travel activity during 2022.
Sabre's sales growth was reasonably good, but the company failed to deliver on the bottom line. Revenue of $631 million for the quarter was up 26% from 2021 levels, closing a year in which sales jumped 50%. However, Sabre posted an adjusted loss of $0.36 per share, which was worse than most investors had expected.
Sabre attributed its performance to a rise in global air, hotel, and other travel bookings, as pressures from the COVID-19 pandemic continued to ease. Revenue in Sabre's travel solutions segment grew at a faster 27% pace than its hospitality solutions segment, and travel solutions also posted a significant amount of operating income. By contrast, hospitality solutions suffered an operating loss for the quarter and the full year.
Investors haven't regained their confidence in Sabre stock, as the company has taken longer than hoped to make progress toward recovering to pre-pandemic health. Until signs of better times ahead take shape, Sabre's share price could remain well below where it traded in the 2010s.
No comments:
Post a Comment