Sea Limited (SE) to Report Q4 Earnings: What's in Store?
Sea Limited SE is set to release its fourth-quarter 2023 results on Mar 04.
The Zacks Consensus Estimate for earnings has been unchanged at 5 cents in the past 30 days. The figure declined 96% year over year.
The consensus mark for revenues is currently pegged at $3.59 billion, indicating 17.71% growth from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing the same in the remaining, the average earnings surprise being 48.3%.
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 before this announcement.
Factors at Play for Q4 Results
Sea Limited's digital financial services segment is likely to have experienced growth due to the diversification of its overall service offerings, reaching a wider user base. The Zacks Consensus Estimate for fourth-quarter 2023 projects digital financial services revenues at $476 million.
The digital entertainment business of Sea Limited is expected to have benefited from strengthening user engagement and improved gameplay in the to-be-reported quarter. The launch of significant games in its pipeline and advancements in AI are anticipated to have enhanced its operational capabilities on the Garena platform.
Growing momentum across its e-commerce business, owing to its synergies with Shopee to leverage AI-powered capabilities, flexible payment options, and increased affordability, is likely to have aided the company’s top-line growth during the quarter under review.
Sea Limited’s strategic initiatives to acquire users in the holiday shopping season, including expanding market share and reinforcing its content ecosystem, are expected to have boosted the e-commerce business segment during the fourth quarter.
However, the company faced challenges in the form of a difficult macroeconomic environment, inflation, and rising interest rates. SE’s fourth-quarter 2023 performance is expected to reflect the trends mentioned above.
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 #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
The Gap GPS has an Earnings ESP of +24.44% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap’s shares have declined 5.8% year to date. GPS is set to report its fourth-quarter 2023 results on Mar 7.
SEMrush SEMR has an Earnings ESP of +23.08% and a Zacks Rank of 2 at present.
SEMrush’s shares have declined 6.7% year to date. SEMR is set to report its fourth-quarter 2023 results on Mar 4.
SentinelOne S has an Earnings ESP of +16.3% and a Zacks Rank #3.
SentinelOne’s shares have returned 3.6% year to date. S is set to release its fourth-quarter fiscal 2024 results on Mar 13.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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SentinelOne, Inc. (S) : Free Stock Analysis Report
Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report
The Gap, Inc. (GPS) : Free Stock Analysis Report
SEMrush Holdings, Inc. (SEMR) : Free Stock Analysis Report
