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Southlake, TX-based Sabre (NASDAQ:SABR) Corporation, a leader in the field of computer programming and data processing services, announced the immediate resignation of board member Gregg Saretsky on Monday. The departure follows a revelation that Saretsky provided unauthorized assistance to a third party investing in a Sabre customer.
The company's board, which was previously unaware of Saretsky's activities, requested his resignation upon learning of the conflict of interest. With his resignation, effective August 12, 2024, the board will reduce its size from ten to nine directors. Saretsky also stepped down from all board committees on which he served.
In other recent news, Sabre Corporation has reported robust financial results for the second quarter of 2024, surpassing its revenue and adjusted EBITDA guidance. This achievement marks the first time in five years that the company has generated positive free cash flow. The company has also raised its full-year 2024 revenue and adjusted EBITDA outlook, reflecting optimism for future performance.
Sabre's CEO, Kurt Ekert, discussed the potential of SabreMosaic, a new technology platform, to transform the Airline IT business into a growth sector in the medium to long term. However, he clarified that a significant financial impact from SabreMosaic is not anticipated in the near term. Sabre is also gaining market share in air distribution bookings, outperforming rivals like Amadeus, and is demonstrating momentum in the Hospitality Solutions business.
InvestingPro Insights
In light of the recent board member resignation at Sabre Corporation, investors may benefit from a deeper look into the company's financial health and market performance. Real-time data from InvestingPro reveals that Sabre currently has a market capitalization of approximately $1.14 billion. Despite an impressive gross profit margin of 59.47% over the last twelve months as of Q2 2024, the company's stock price has experienced significant volatility, as indicated by a one-year price total return of -50.18%.
Moreover, Sabre's stock has been under pressure, with price declines of -8.77% over the last week and -32.45% over the last six months. These figures underscore the volatile nature of the stock, a factor that potential investors should consider. Additionally, two analysts have revised their earnings estimates downwards for the upcoming period, signaling potential concerns about the company's future profitability. In fact, analysts do not anticipate Sabre will be profitable this year, and the company has not been profitable over the last twelve months.
For those interested in further analysis and additional InvestingPro Tips, Sabre Corporation has a total of 10 tips available on InvestingPro, which can be accessed through the following link: https://www.investing.com/pro/SABR. These insights could provide valuable context for investors as they assess the impact of the recent governance issues on the company's long-term prospects.
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