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Sabre's earnings dent Coforge; stock hits 52-week low
Coforge's stock slid over 4% today, adding up to a 7% dip this week, after its key client Sabre reported disappointing earnings.
Sabre's own shares crashed 35% on Nasdaq as both revenue and EBITDA missed expectations, sending a ripple effect through Coforge.
Sabre cuts growth, profit guidance
Sabre cut its growth outlook, now expecting just 4%-10% growth in Air Distribution Volumes (down from double digits), and lowered its profit guidance by about $60-$100 million.
This hit especially hard since Coforge had signed a big $1.56 billion deal with Sabre earlier this year to boost product delivery and AI.
Despite the recent slump—Coforge shares are down 17% this month—the company says margin improvements could kick in from the next quarter.