What to expect from Sabre's (SABR) Q3 earnings

What happened

Sabre, a travel technology company, is scheduled to report its third-quarter results this Thursday before market hours. Analysts expect revenue to grow 2.2% year on year, slower than the 3.5% growth in the same quarter last year; estimates were generally reconfirmed over the past 30 days.

Confirmed

Global impact / market context

Revenue growth is a sign of how much Sabre earns from its business, but the article also highlights prior weakness: last quarter it missed analysts’ earnings-per-share estimates and its next-quarter EBITDA guidance. Those results make the upcoming report important for assessing growth and cost pressure.

Analyst inference

Analysts’ 2.2% revenue-growth expectation is below the comparable quarter’s 3.5% increase, while their estimates have generally held steady recently. Sabre has also missed revenue estimates multiple times in two years, so the report may test whether its recent performance matches expectations.

Analyst inference

What to watch

1. Check reported third-quarter revenue against the expected 2.2% year-on-year growth; weaker revenue could indicate slower business activity and affect expectations for future revenue. Analyst inference
2. Look for earnings per share, or profit allocated to each share, and any updated EBITDA outlook, a measure of operating performance, given last quarter’s misses. Analyst inference
3. Compare Sabre’s booking total and year-on-year change with its prior 92 million bookings, up 1.9%, to gauge whether travel transactions are growing. Analyst inference

Evidence

• stockstory.org