Sabre Corporation (SABR – Free Report) reported fourth-quarter 2024 adjusted loss of eight cents per share, wider than the Zacks Consensus Estimate of a loss of seven cents per share. However, the figure was narrower than the year-ago quarter’s loss of 12 cents per share. The year-over-year improvement in the bottom line was due to the benefits of increased revenues and cost-improvement implementations.
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Sabre reported revenues of $714.7 million, which missed the consensus mark of $715.1 million. The top line increased 4% from $687.1 million reported in the year-ago period. This year-over-year surge in the top line was due to a significant improvement in global air, hotel and other travel bookings. Additionally, the company’s Travel Solutions division benefited from improved rates and favorable customer mix.
Despite missing the earnings and revenue estimates, Sabre released strong guidance for 2025 where it anticipates high single-digit year-over-year revenue growth, surpassing the Zacks Consensus Estimate. This optimistic outlook can further boost SABR stock, which has gained 44.1% in the past year, outperforming the Zacks Internet – Software and Services industry’s growth of 24.7%.
Sabre Corporation Price, Consensus and EPS Surprise
Sabre Corporation price-consensus-eps-surprise-chart | Sabre Corporation Quote
Sabre’s Q4 in Detail
The Travel Solutions segment’s revenues increased 3.7% year over year to $644.86 million. The growth in this segment was led by a rise in global hotel and other travel bookings. The segment also benefited from favorable rates from the travel supplier mix. Our model estimates for Travel Solutions revenues were pegged at $646.1 million.
Distribution’s (a sub-division of Travel Solutions) revenues improved 5% to $499.7 million. The Distribution segment registered growth in the number of bookings and benefited from a favorable shift in the booking mix and higher average booking fees. Our model estimates for Distribution revenues were pegged at $504.2 million, which indicated 5.9% year-over-year growth.
IT Solutions’ (a sub-division of Travel Solutions) revenues were $145.1 million, down 0.6% year over year. The decline in performance was due to the negative impact of de-migrations. Our model estimates for IT Solutions’ revenues were pegged at $142 million.
The Hospitality Solutions segment’s revenues were $80.8 million compared with the year-ago quarter’s $75.1 million. The growth in revenues was mainly due to positive customer deployments, CRS transaction growth and a favorable mix within the customer base. Our model estimates for Hospitality Solutions revenues were pegged at $80.7 million.
Sabre reported an adjusted EBITDA of $115.4, which improved from the year-ago figure of $95.86 million. Adjusted EBITDA margin improved 210 basis points year over year to 16.1% in the fourth quarter of 2024.
Sabre’s Balance Sheet and Cash Flow
Sabre exited the September-end quarter with cash, cash equivalents and restricted cash of $745.5 million compared with the previous quarter’s $669.2 million.
During the fourth quarter, it generated operating cash flow and free cash flow of $82.7 million and $67 million, respectively.
Sabre’s First Quarter and 2025 Guidance
Sabre initiated the guidance for the first quarter and full-year 2025. For 2025, Sabre expects its revenues to grow year over year in high single digits. The Zacks Consensus Estimate for 2025 revenues is pegged at $3.19 billion, indicating year-over-year growth of 5.15%.
Adjusted EBITDA is forecasted to be approximately $700 million for 2025. The company expects to generate more than $200 million in cash flow throughout 2025.
Additionally, Sabre initiated guidance for the first quarter. SABR anticipates revenue growth in flat to low single digits. It anticipates an adjusted EBITDA of $150 million.
SABR’s Zacks Rank and Stocks to Consider
Currently, SABR carries a Zacks Rank #3 (Hold).
Celestica (CLS – Free Report) , Arista Networks (ANET – Free Report) and Pitney Bowes (PBI – Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. CLS and PBI presently sport a Zacks Rank #1 (Strong Buy) each while ANET carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CLS’ 2025 earnings has been revised 31 cents upward to $5.67 per share over the past 30 days, indicating a 6.78% year-over-year increase. CLS shares have risen 251.2% in the past year.
The consensus mark for ANET’s 2025 earnings has been revised upward by a penny to $2.42 per share over the past 60 days, indicating a 6.6% year-over-year increase. ANET shares have gained 60.2% in the past year.
The consensus estimate for PBI’s 2025 earnings has been revised nine cents downward to $1.21 per share over the past seven days, indicating a 47.6% year-over-year decline. PBI shares have gained 172.8% in the past year
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