Here’s why Coforge shares may have declined over 5% on Friday

Shares of Coforge Ltd. are trading with losses of over 5% on Friday, August 8. The stock is down in three out of the last our trading sessions. During this period, the stock has corrected 8%.The move comes after Sabre, one of its largest clients reported its results overnight, which had triggered a 35% fall in the stock price no the Nasdaq.

Sabre’s current quarter revenue and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) were both below the company’s initial guidance.

Additionally, the company also sharply trimmed its guidance for the full year to 4% to 10% in the Air Distribution Volumes, compared to their earlier “double-digit” growth guidance. Revenue guidance was also cut to flat to low-single-digit growth from the high-single-digit growth earlier, while the pro forma EBITDA guidance on an adjusted basis was slashed to $530 million to $570 million from $630 million earlier.In March this year, Coforge had signed a $1.56 billion, multi-year agreement with Sabre, which is a leading travel technology company to accelerate the latter’s product roadmap.

As per this 13-year contract, Coforge is supposed to play a key role in enhancing product delivery and developing AI-enabled solutions, reinforcing Sabre’s commitment to innovation, speed, and scale.

In an interaction with CNBC-TV18 on July 24, Sudhir Singh of Coforge had highlighted that margin accretion for the company will become very visible rom the second quarter and that the BFS revenue decline during the quarter was a quarterly blip.

Shares of Coforge are trading 5.3% lower at ₹1,610.8. The stock has declined 18% in the last one month.