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Sea Limited (SE) to Report Q3 Earnings: What's in Store?

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Sea Limited SE is set to release third-quarter 2021 results on Nov 16.

The Zacks Consensus Estimate for loss has been unchanged at 44 cents per share over the past 30 days. Sea Limited reported a loss of 69 cents per share in the year-ago quarter.

The consensus mark for revenues is currently pegged at $2.58 billion, indicating 55% 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 37.1%.

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 Q3 Results

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

Garena is likely to have benefited from the continued popularity of Free Fire amid stiff competition from Tencent TCEHY. Per Sensor Tower data, the game was the third most downloaded mobile game worldwide in September 2021 beating Tencent’s PUBG Mobile. Free Fire was also the third most-downloaded game in August 2021.

Moreover, Free Fire was the ninth top-grossing mobile game in September 2021 and sixth top-grossing in August 2021. Tencent’s PUBG Mobile was the top-grossing game in August and the third top-grossing game in September.

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:

Applied Materials AMAT has an Earnings ESP of +0.52% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Applied Materials shares have returned 81.2% year-to-date compared with the Zacks Semiconductor Equipment - Wafer Fabrication industry’s rally of 66.5% and the Computer & Technology sector’s return of 25.9% year-to-date.

Agilent Technologies A has an Earnings ESP of +0.61% and a Zacks Rank of 3.

Agilent shares have returned 35.8% year to date compared with the Zacks Electronics- Testing Equipment industry’s growth of 17.3%. Agilent has outperformed the Computer & Technology sector’s return of 25.9% year-to-date.


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

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

Applied Materials, Inc. (AMAT) : Free Stock Analysis Report

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

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