Why Sabre Stock Is Grounded Today
Sabre (NASDAQ: SABR) lost less money than expected in the fourth quarter, but its outlook raised significant questions about future growth. Shares of the travel software company, which reported its Q4 earnings results Thursday, traded down 27% as of 12:30 p.m. ET as investors seemingly can find little reason to get excited about the stock.
Sabre is one of three major global travel distribution systems, networks that connect travel agencies and users to a vast array of flights, hotels, and rental car options. It is a business that has been somewhat sidestepped by internet options but remains important to large agencies and corporate travel services.
Sabre lost $0.12 per share in the fourth quarter, ahead of the consensus $0.14-per-share loss estimate, on revenue that at $687 million was about $4 million below what was expected. Free cash flow for the quarter was $77 million, much better than the $22 million reported in the fourth quarter of 2022.
Source Fool.com
