Sabre (SABR) and Thai Airways Renew Distribution Agreement
Sabre Corporation SABR recently revealed that Thailand's flag carrier, Thai Airways, has renewed its distribution agreement with the company. The renewed agreement reaffirms Thai Airways' trust in Sabre's Global Distribution System (“GDS”) solution.
Sabre’s GDS is a New Distribution Capability (“NDC”)-enabled consistent end-to-end workflow solution, which works like a marketplace connecting travel suppliers with buyers. Thai Airways is believed to use this platform to expand its content regime and services while creating compelling offers for its customers.
We believe that the renewed distribution agreement will strengthen Thai Airways’ ancillary sales while increasing transparency in the purchasing process, thereby ultimately enhancing customer satisfaction. The partnership will provide Sabre GDS users with enhanced offerings from the air carrier.
Sabre Corporation Price and Consensus
Sabre Corporation price-consensus-chart | Sabre Corporation Quote
The recent collaboration reflects the reliability of global air carriers on Sabre’s GDS platform. Last week, Sabre inked a partnership with United Airlines, under which the former will make available the latter’s NDC contents through the GDS platform.
The deal with United Airlines marked the 10th air carrier with whom Sabre has successfully integrated and made the NDC content available through its GDS system. Earlier this month, Sabre revealed that Virgin Atlantic renewed its long-standing global distribution agreement, under which the travel technology provider will offer enhanced contents from the air carrier via its GDS.
In March, Sabre revealed the availability of the NDC content from Finland’s flag air carrier, Finnair, via its GDS platform. In the same month, it announced the availability of the NDC content from American Airlines Group through its GDS marketplace.
With more relaxation in pandemic-related restrictions worldwide, Sabre is well-poised to capitalize on the global travel industry’s improving market scenario. Deals with global airlines are likely to aid the company in expanding its customer share in the Travel Solutions segment.
The Travel Solutions segment’s revenues totaled $574 million in the fourth quarter of 2022, registering year-over-year growth of 27%. This was primarily driven by a gradual recovery in global air and other bookings. The segment’s revenues also benefited from favorable rate impacts as international and corporate bookings improved.
Sabre has more than 425,000 travel agency partners worldwide at present. The company provides one of the largest marketplaces in the world that manages approximately $260 billion worth of global travel spending annually. The leading travel-related software and technology provider has its customer base spread over 160 nations globally.
Zacks Rank & Stocks to Consider
Currently, Sabre carries a Zacks Rank #3 (Hold). Shares of SABR have plunged 34.6% year to date (YTD).
Some better-ranked stocks in the broader technology sector are Wix.com WIX, Zscaler ZS and Adobe ADBE, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has been revised upward to 23 cents per share from a loss of 9 cents per share 60 days ago. For 2023, earnings estimates have been revised northward by 119.1% to $1.49 per share in the past 60 days.
Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have risen 18.3% YTD.
The Zacks Consensus Estimate for Zscaler's third-quarter fiscal 2023 earnings has been revised a penny northward to 39 cents per share in the past 30 days. For fiscal 2023, earnings estimates have been revised northward by 4 cents to $1.52 per share in the past 30 days.
Zscaler’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 29.7%. Shares of ZS have declined 5.6% YTD.
The Zacks Consensus Estimate for Adobe's second-quarter fiscal 2023 earnings has been revised upward by 2 cents to $3.78 per share over the past 30 days. For fiscal 2023, earnings estimates have moved upward by 10 cents to $15.41 per share in the past 30 days.
Adobe's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 2.6%. Shares of ADBE have soared 12.3% YTD.
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