Sea (SE) Reports Q1: Everything You Need To Know Ahead Of Earnings

Anthony Lee /
2024/05/13 3:01 am EDT

E-commerce and gaming company Sea (NYSE:SE) will be announcing earnings results tomorrow before market open. Here's what to expect.

Sea beat analysts' revenue expectations by 2.5% last quarter, reporting revenues of $3.64 billion, up 5.5% year on year. It was a weak quarter for the company, with a decline in its users and slow revenue growth. It reported 39.7 million users, down 8.9% year on year.

Is Sea a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Sea's revenue to grow 19.2% year on year to $3.62 billion, improving from the 4.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.

Sea Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sea has missed Wall Street's revenue estimates twice over the last two years.

Looking at Sea's peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. MercadoLibre delivered year-on-year revenue growth of 36%, beating analysts' expectations by 12.1%, and Shutterstock reported flat revenue, topping estimates by 2.8%. MercadoLibre traded up 8.2% following the results while Shutterstock was down 7.5%.

Read our full analysis of MercadoLibre's results here and Shutterstock's results here.

There has been positive sentiment among investors in the online marketplace segment, with share prices up 2.9% on average over the last month. Sea is up 23% during the same time and is heading into earnings with an average analyst price target of $68.7 (compared to the current share price of $64.85).

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