The travel industry is one of the fastest growing globally. Particularly, the industry’s share of global economy has been growing since 2006. Last year alone, the industry contributed a total of $8.27 trillion to the global economy. As such, Sabre Corp (NASDAQ:SABR) is taking advantage of the potential to grow its balance sheet.
Sabre Corp (NASDAQ:SABR) financial performance
In its latest earnings report, the company’s numbers mirror the lucrative nature of the air travel business. Particularly, the firm reported total earnings of $970.3 million.
Further, the firm reported a profit margin higher than the similar period last year. In particular, the firm’s profit per share was 39 cents after accounting for costs.
Interestingly, the profit and the revenue in total beats the estimates put forward by analysts. For instance, Zacks Investment Research estimated 34 cents per share earnings.
Like earlier mentioned, the firm posted total earnings for the Q3 period as $970.3. Interestingly, this is against another estimate by Zacks of $940.7 million. Evidently, the firm seems to have put in place strategies that ensured the high earnings.
As a result of the strong earnings, Sabre Corp (NASDAQ:SABR) recently revealed plans to issue a quarterly dividend. Particularly, the firm revealed that it will pay investors 0.14 per share as dividends. Interestingly, all investors of by Friday December 21st are eligible for the dividend payment.
A detailed analysis of the issuance reveals that the new dividend scheme equals to $0.56 dividend on an annualized basis. This is to say that, taken on an annual basis, the average dividend paid out adds up to $0.56 per share.
Stock price performance
Despite the strong financials, the firm’s share price seems to be fluctuating dangerously. This is despite a 4.7% growth of the stock in the immediate aftermath of the earnings report.
A look at the company’s 50-day moving average indicates that the stock price is healthy. Particularly, there seems to be enough demand to lend support at $24.05. However, this is not to say that the price will not fall past the support price.
Already, the stock price fell 3.71% in the last trading period. Nonetheless, the new price of $25.18 per share does not seem threatening enough to trigger a sell-off. This is because it is still above the 200-day moving average value of $24.05.
Interestingly, both the MA (50) and the MA (200) agree that there is enough demand to avoid further fall. With a spread of only 0.69 between the two indicators, the stock is healthy and could grow further.
Apart from the strength shown by the stock price, the firm is showing its appetite for growth in new appointments. In particular, the firm expanded its top-level management by appointing Andreas Syrigos who will lead the company’s Nordic business.
Specifically, the new appointee will spearhead Sabre’s growth in the region. The company has a lot of confidence in him and that he will deliver on the strategy.
Antonella Vecchio, a vice president at Sabre Travel Network said of the appointments:
“Syrigos is a strong commercial leader, is passionate about technology and has an eye for helping agencies grow their businesses through getting the best out of their technology. He will now also focus on spearheading and accelerating our business in the Nordics.”
This is evidence that the appointee will add value to the company. As a result, investors should expect the company to report even better results in the coming months. Subsequently, they should expect increased demand for the company’s stock.
Ultimately, it is very likely that Sabre will continue beating estimates.