What happened
Travel industry software specialist Sabre (SABR -0.18%) unveiled its latest quarterly results on Tuesday morning. The company's stock vaulted skyward -- by nearly 22% as of mid-afternoon trading -- thanks to a top-line figure that beat analyst expectations, and some optimistic pronouncements by management.
So what
For its fourth quarter, Sabre booked almost $501 million in revenue, which was a sturdy 60% higher on a year-over-year basis. The travel sector mainstay also managed to narrow its non-GAAP (adjusted) net loss, which came in at nearly $152 million ($0.47 per share) against the Q4 2020 shortfall of $253 million.
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The revenue figure was better than expected. On average, prognosticators tracking the stock were anticipating slightly over $497 million on the top line. As for profitability, the company didn't miss by much as analysts were collectively modeling a $0.44 per-share net loss.
As a key software-solutions provider to the travel industry, Sabre is dead in the middle of one of the economic sectors most badly affected by the COVID-19 pandemic.
But as we tentatively emerge from the global health crisis, the company should rebound. Travel business site Skift quoted CEO Sean Menke as saying that "By 2025, we expect to exceed pre-Covid-19 levels for adjusted [earnings before interest, taxation, depreciation, and amortization, or EBITDA]."
Now what
2025 might seem ages away. Regardless, Sabre clearly sees a notable recovery in its future. Investors seem to think the company is being conservative in its assumptions; pent-up demand for all types of travel services should come back very quickly and forcefully, assuming we successfully emerge from the Coronavirus Era.
