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Sea Limited (SE) to Report Q2 Earnings: What's in Store?

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Sea Limited SE is set to release second-quarter 2021 results on Aug 17.

The Zacks Consensus Estimate for loss has been unchanged at 36 cents per share over the past 30 days. Sea Limited reported a loss of 68 cents per share in the year-ago quarter.

The consensus mark for revenues is currently pegged at $2.26 billion, indicating 76% growth from the year-ago quarter’s reported figure.

The company’s earnings missed the Zacks Consensus Estimate in all of the trailing four quarters, the negative earnings surprise being 24.5%.

Sea Limited Sponsored ADR Price and EPS Surprise

Sea Limited Sponsored ADR Price and EPS Surprise
Sea Limited Sponsored ADR Price and EPS Surprise

Sea Limited Sponsored ADR price-eps-surprise | Sea Limited Sponsored ADR Quote

Let’s see how things have shaped up prior to this announcement.

Factors at Play for Q2 Results

Sea Limited’s digital entertainment (Garena) and e-commerce businesses are expected to have continued to capitalize from changing consumer behavior in the second quarter.

Garena is likely to have benefited from the continued popularity of Free Fire. Per Sensor Tower data, the game was the ninth highest-grossing mobile game worldwide in July 2021. Tencent’s TCEHY PUBG Mobile and Honor of Kings were placed at #1 and #2, respectively.

Free Fire was also the fifth most downloaded game in May and June 2021.

The company’s e-commerce segment is likely to have gained traction from a strong uptick in Shopee, its online shopping platform. Additionally, SeaMoney’s strengthening integration with Shopee is expected to have aided Sea’s digital financial services business.

Higher expenses related to the expansion of e-commerce services, and continued efforts to integrate the company’s mobile wallet services with the Shopee platform across different markets are expected to have negatively impacted profitability in the to-be-reported quarter.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Sea Limited has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a couple of companies worth considering as our model shows that they have the right combination of elements to beat on earnings this reporting cycle:

Agilent Technologies A has an Earnings ESP of +1.16% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cisco System CSCO has an Earnings ESP of +1.82% and a Zacks Rank #3.


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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report

Agilent Technologies, Inc. (A) : Free Stock Analysis Report

Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report

Tencent Holding Ltd. (TCEHY) : Free Stock Analysis Report

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