February 20, 2025

Sabre stock surges on upbeat profit forecast

Investing.com -- Shares of Sabre (NASDAQ: NASDAQ: SABR ) climbed 18% following the company's optimistic profit forecast. The travel technology company reported a narrower-than-expected loss per share for the fourth quarter and provided a robust full-year outlook for 2025.

Sabre announced a fourth-quarter EPS of ($0.08), which was $0.02 better than the analyst estimate of ($0.10). However, the company's revenue for the quarter slightly missed expectations, coming in at $714.72 million compared to the consensus estimate of $719.14 million.

Despite the revenue shortfall, investors appeared to focus on the company's forward-looking statements. Sabre's full-year 2025 outlook anticipates high single-digit YoY revenue growth, with adjusted EBITDA expected to exceed $700 million and free cash flow projected to top $200 million.

The positive response to Sabre's earnings report and future guidance underscores the market's confidence in the company's recovery trajectory and its ability to generate increased profits and cash flow in the coming years. The travel industry, heavily impacted by the pandemic, has been on a gradual path to recovery, and Sabre's forecast suggests it is well-positioned to capitalize on this rebound.

Investors will be watching closely as Sabre works towards meeting its ambitious 2025 targets, which would mark a significant turnaround from the losses incurred during the travel industry's downturn. As the company continues to innovate and expand its offerings, its stock movement will likely reflect its progress in achieving these financial goals.

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