SABRE CORPORATION Reports Fourth Quarter Earnings Results for Fiscal Year 2022.
February 24, 2023
Earnings Overview
Sabre Corporation ($NASDAQ:SABR) has reported its earnings for the fourth quarter of Fiscal Year 2022, which concluded on December 31st, 2022. Revenue for the quarter totaled USD -160.1 million, signifying a 14.3% growth from the corresponding period in the preceding year. Additionally, net income rose to USD 631.2 million, an increase of 26.1% from the same quarter the year before.
Transcripts Simplified
Distribution revenue totaled $417 million, a 46% increase compared to $286 million in Q4 2021. Bookings totaled $76 million in the quarter, a 32% increase compared to $58 million in Q4 2021, with an average booking fee of $5.49. IT Solutions revenue totaled $157 million in the quarter, a decline versus revenue of $165 million last year. Passengers boarded totaled $168 million, a 30% improvement from $129 million in Q4 2021.
The company expects to be free cash flow positive on an annual basis in 2023 and is targeting for expenses to grow at a significantly slower rate than revenue to support their adjusted EBITDA and cash flow targets. Their long-term goal is to be between two and a half times to three and a half times net debt to adjusted EBITDA.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sabre Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 2.54k | -456.83 | -17.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sabre Corporation. More…
| Operations | Investing | Financing |
| -279.72 | 173.98 | -75.37 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sabre Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.96k | 5.84k | -2.26 |
Key Ratios Snapshot
Some of the financial key ratios for Sabre Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -13.9% | -7.5% | -5.1% |
| FCF Margin | ROE | ROA |
| -13.8% | 9.8% | -1.6% |
Stock Price
The stock opened at $6.0 and closed at $5.6, a 19.4% drop from the prior closing price of 6.9. This steep plunge has investors concerned as the company had previously predicted an increase in revenue and profits. The fourth quarter has been a difficult period for SABRE CORPORATION as they have been heavily affected by the unprecedented events of this past year. The pandemic caused immense disruption to their operations, which in turn led to a significant drop in revenue and profits.
As such, the company was forced to make adjustments in order to stay afloat, including layoffs and cost-cutting measures. The future of SABRE CORPORATION will depend on how the company responds to the events of the past year. With the implementation of a new strategic plan and the confidence of both investors and employees, SABRE CORPORATION is confident that it can regain its financial health and emerge stronger than ever in the coming years. Live Quote…
Analysis
GoodWhale recently conducted an analysis of SABRE CORPORATION‘s wellbeing to provide an objective review of their current financial situation. Based on our Risk Rating, SABRE CORPORATION is a medium risk investment in terms of financial and business aspects. Further evaluation of their income statement and balance sheet revealed two potential risks. GoodWhale encourages investors to register to our platform to access more in-depth details on SABRE CORPORATION’s overall potential investment risk. Through our platform, we provide a more thorough review of their financial characteristics. With GoodWhale’s analysis and financial expertise, we can provide users with an understanding of SABRE CORPORATION’s financial health and potential investment risk. We strive to ensure that users can make informed decisions about their investments. More…
Peers
The competition between Sabre Corp and its competitors is fierce. Amadeus IT Group SA, Ying Hai Group Holdings Co Ltd, and Expedia Group Inc are all major players in the travel industry, and each company is fighting for market share. The company’s main competitors are Amadeus IT Group SA, Ying Hai Group Holdings Co Ltd, and Expedia Group Inc.
– Amadeus IT Group SA ($OTCPK:AMADY)
Amadeus IT Group SA is a Spanish company that provides global distribution system services for the travel and tourism industry. It is headquartered in Madrid. As of 2022, Amadeus IT Group’s market capitalization is €22.74 billion and its return on equity is 7.86%. The company’s main products and services include airline reservations systems, hotel booking systems, and car rental systems. Amadeus IT Group also offers consulting and IT services to the travel and tourism industry.
– Ying Hai Group Holdings Co Ltd ($SEHK:08668)
Ying Hai Group Holdings Co Ltd is a holding company that engages in the provision of shipping transportation services. The company operates through the following segments: Container Shipping, Bulk Shipping, and Logistics. The Container Shipping segment offers container transportation services. The Bulk Shipping segment provides dry bulk transportation services. The Logistics segment handles the logistics and warehousing businesses. Ying Hai Group Holdings was founded on June 6, 1997 and is headquartered in Hong Kong.
– Expedia Group Inc ($NASDAQ:EXPE)
Expedia Group is an online travel company that operates websites and mobile apps under a variety of brands. It offers a search engine for finding flights, hotels, rental cars, and vacation packages. The company also provides travel planning services, trip insurance, and other travel-related products and services. Expedia Group is headquartered in Bellevue, Washington.
Summary
SABRE CORPORATION recently released its earnings results for the fourth quarter of the Fiscal Year 2022, which ended on December 31st, 2022. The company reported total revenue of USD -160.1 million, a 14.3% increase from the same period in the previous year, and net income of USD 631.2 million, up 26.1%. Despite this promising financial performance, the stock price moved down on the same day. Investors may be concerned about the margins of the company, with total revenue being lower than expected.
However, given the high year over year growth rate of the company’s net income, the potential for future growth should be considered.
In addition, as the company continues to focus on value-adding activities such as cost optimization, investors should look to the long-term fundamentals for a more comprehensive view of SABRE CORPORATION’s financial stability and potential upside potential.
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