Shares of airline software supplier Sabre saw a significant jump of over 29% following the company’s announcement that it has narrowed its second-quarter loss and improved its full-year sales outlook.
Strong Second-Quarter Performance
Sabre reported a second-quarter loss of $129.3 million, or 39 cents a share, which represents a reduction from the $192.7 million loss, or 59 cents a share, during the same period last year. Adjusted loss per share came in at 17 cents, surpassing analysts’ expectations of a loss of 23 cents per share, according to FactSet. This impressive performance contributed to the surge in stock price.
Robust Revenue Growth
In addition to narrowing its losses, Sabre also announced a revenue increase of 12% to $737.5 million for the second quarter. This figure exceeded analysts’ predictions of $711.3 million, further boosting investor confidence.
Improved Full-Year Outlook
Moreover, Sabre updated its full-year sales outlook to a range of $2.9 billion to $3 billion, marking a $100 million increase in the lower end of the range. The company also adjusted its full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast to $340 million, up from the previous range of $300 million to $320 million.
Despite these positive developments, it’s worth noting that Sabre’s stock is still down approximately 22% for the year. However, the recent gains demonstrate a promising upward trend that investors are eager to capitalize on.