Earnings To Watch: Sea Limited (SE) Reports Q1 Results Tomorrow

Anthony Lee /
2023/05/15 4:21 am EDT
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E-commerce and gaming company Sea Limited (NYSE:SE) will be reporting results tomorrow before market hours. Here's what to expect.

Last quarter Sea Limited reported revenues of $3.45 billion, up 7.12% year on year, beating analyst revenue expectations by 13.2%. It was a weaker quarter for the company, with declining number of users and slow revenue growth. The company reported 43.6 million paying users, down 43.5% year on year.

Is Sea Limited buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Sea Limited's revenue to grow 4.51% year on year to $3.03 billion, slowing down from the 64.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share.

Sea Limited Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Sea Limited's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Shutterstock delivered top-line growth of 8.11% year on year, beating analyst estimates by 1.77% and Teladoc reported revenues up 11.3% year on year, exceeding estimates by 1.78%. Shutterstock traded flat on the results, Teladoc was up 4.97%. Read our full analysis of Shutterstock's results here and Teladoc's results here.

The technology sell-off has been putting pressure on stocks since November and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 5.51% over the last month. Sea Limited is up 2.85% during the same time, and is heading into the earnings with analyst price target of $99, compared to share price of $85.6.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.