E-commerce and gaming company Sea (NYSE:SE) will be reporting results tomorrow before market open. Here's what you need to know.
Last quarter Sea reported revenues of $3.10 billion, up 5.2% year on year, missing analyst expectations by 4.7%. It was a weak quarter for the company, with a decline in its user base and a miss of analysts' revenue estimates. The company reported 43.1 million users, down 23.2% year on year.
Is Sea buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Sea's revenue to grow 1.7% year on year to $3.21 billion, slowing down from the 17.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
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's peers in the online marketplace segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Shutterstock delivered top-line growth of 14.3% year on year, beating analyst estimates by 8.8% and Airbnb reported revenues up 17.8% year on year, exceeding estimates by 0.8%. Shutterstock traded up 13.8% on the results, Airbnb was down 3.4%.
Read our full analysis of Shutterstock's results here and Airbnb's results here.
Investors in the online marketplace segment have had steady hands going into the earnings, with the stocks up on average 1.6% over the last month. Sea is down 2.6% during the same time, and is heading into the earnings with analyst price target of $63, compared to share price of $45.48.
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The author has no position in any of the stocks mentioned.