Sabre Incurs 4Q Loss As COVID-19 Hurts Sales

Sabre reported lower-than-expected 4Q results as pandemic-led travel restrictions negatively impacted air and hotel bookings. Shares of the software and technology solutions provider to the travel industry closed 2.2% lower on Tuesday.

Sabre (SABR) reported a 4Q adjusted loss of $0.77 per share, which was larger than the $0.66 loss expected by analysts. The bottom-line result also compared unfavorably with the year-ago quarter’s adjusted earnings of $0.16 per share.

Revenues plunged 67% to $314 million year-over-year as global travel restrictions caused significant reductions in air, hotel, and other travel bookings. Moreover, its top-line missed the Street’s estimates of $328.6 million. (See Sabre stock analysis on TipRanks)

Following the earnings release, Oppenheimer analyst Jed Kelly reiterated a Hold rating on the stock. In a note to investors, Kelly wrote, “We believe recent global travel agency wins and an ongoing cloud migration are better positioning SABR to scale long-term travel technology trends. However, COVID-19 is severely impacting travel demand and creating structural challenges in forecasting earnings. Therefore, we wait for the industry to stabilize and earnings visibility to improve before recommending shares.”

The Street remains sidelined on the stock with a Hold consensus rating based on 2 Holds, 1 Buy and 1 Sell. The average analyst price target of $11.33 implies downside potential of about 1.8% to current levels. Shares are down about 47.6% over the past year.

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