Sabre Undertakes Efforts to Boost Presence in Airlines Space

Sabre Corporation’s SABR efforts to stay ahead in the highly competitive and dynamic airline IT space are evident from its constant focus on improving and innovating its technology to provide seamless end-to-end travel experience.

This is further evident from the company’s recent agreement to acquire airline technology solutions provider — Farelogix. The $360 million deal is expected to enhance and expedite the delivery of its end-to-end NDC-enabled retailing, distribution and fulfillment capabilities. With the acquisition, Sabre aims to increase its airline clients’ growth and profitability.

Farelogix’s Software-as-a-Service (SaaS) solutions allow carriers to create, control, optimize and personalize their offers across sales channels. This will complement Sabre, which generates part of its revenues from the SaaS-based offerings of its Airlines Solutions segment.

Airlines Solutions: A Major Growth Driver

Sabre has witnessed consistent revenue growth since its initial public offering in 2014, at a CAGR of 8.2%. Robust adoption of the company’s solutions resulting in a huge customer base has aided the top-line growth.

Its Airline Solutions offerings such as Sabresonic Reservation system, AirVision and AirCenter witnessed robust growth in these years and led to impressive rise in revenues, which has positively impacted the confidence of both clients and investors alike.

Notably, Sabre was recently certified as NDC level 3 aggregator by International Air Transport Association, making it the third global distribution system after Travelport and Amedeus to receive this certification.

The company also started its Beyond NDC partner program in association with travel and airline industry leaders. As part of this program, Sabre recently partnered with a string of airlines companies like Alitalia, China Eastern, Etihad Airways and Aegean Airlines. Moreover, the company announced the renewal of its agreement with Jet Airways.

Sabre’s launch of industry-first Digital Airline Commercial Platform with Aeroflot, Ethiopian Airlines and Etihad Airways on board as launch partners marks a major upgrade to its SabreSonic and AirVision suite. This is expected to be a key growth driver.

Notably, its recently reported quarterly results reflected the consistent healthy uptrend of its Airline Solutions revenues, which grew 1.1% year over year. AirVision and AirCentre commercial and operations solutions revenues increased 6%.

Sabre Corporation Revenue (TTM)

Sabre Corporation Revenue (TTM) | Sabre Corporation Quote

Zacks Rank and Other Stocks to Consider

Sabre currently has a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the broader technology sector are Stratasys, Ltd. SSYS, Intel Corporation INTC and CACI International, Inc. CACI, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Stratasys, Intel and CACI is projected to be 15.75%, 8.42% and 10%, respectively.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Sabre Corporation (SABR) : Free Stock Analysis Report
 
CACI International, Inc. (CACI) : Free Stock Analysis Report
 
Stratasys, Ltd. (SSYS) : Free Stock Analysis Report
 
Intel Corporation (INTC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research