Sabre Corp (SABR)

Sabre Corp. stock (SABR) plummeted by 22.45% due to its Q4 earnings results. The company's fourth-quarter earnings slightly better than expected but delivered an outlook that failed to inspire investor confidence, causing a significant decline in its stock price. Despite a modest improvement in financial performance, Sabre's cautious forecast for 2024 led to a lack of enthusiasm among investors.

• Performance Overview: As a leading global travel distribution system, Sabre facilitates connections between travel agencies and users for flights, hotels, and rental car bookings. While the company managed to narrow its loss to $0.12 per share in Q4, beating the consensus estimate of a $0.14-per-share loss, revenue of $687 million fell short of expectations by $4 million. However, Sabre's free cash flow improved to $77 million, compared to $22 million in Q4 2022.
• 2024 Outlook: CEO Kurt Ekert highlighted 2023 as a year of "significant commercial successes, efficiency gains, and product innovation achievements," driving a 15% increase in sales to $2.9 billion. However, the outlook for 2024 suggests a flat performance compared to 2023, with Sabre projecting approximately $3 billion in revenue, indicating limited growth prospects for the coming year.

SABR's stock fell 9.46% after they announced its intended refinancing plan to proactively manage and extend the maturity profile of its debt. Sabre GLBL Inc., a wholly-owned subsidiary of Sabre, has entered into a commitment letter with lenders for a $665 million new senior secured credit facility to Sabre Financial Borrower, LLC, a newly created wholly-owned subsidiary of Sabre GLBL. The New Facility will be secured by an intercompany loan by the Borrower to Sabre GLBL, as further described below, and will receive direct guarantees from, and security interest in assets of, certain foreign subsidiaries of Sabre.

https://finance.yahoo.com/news/sabre-corporation-announces-commitment-665-122500188.html