Russ Cohen

Sea Limited (SE) to Report Q1 Earnings: What's in Store?



Anticipating Sea Limited (SE) Q1 Earnings Report

Sea Limited (SE) Q1 Earnings Preview

Sea Limited (SE) is preparing to unveil its first-quarter 2024 financial results on May 14.

The Zacks Consensus Estimate for earnings remains steady at 36 cents over the past month, indicating a 40.98% drop year over year.

Revenue estimates sit at $3.62 billion, reflecting a robust 22.02% growth compared to the previous year.

In recent quarters, SE’s earnings surpassed expectations once and fell short three times, averaging a negative surprise of 55.87%.

Factors Influencing Q1 Results

Sea Limited is likely to have witnessed growth in its digital financial services segment fueled by a diversified service portfolio attracting a broader user base.

Anticipated revenue growth of 17.91% year over year for the first quarter in digital financial services is attributed to SeaMoney, the company’s primary growth engine, tapping into areas like digital banking and insurance.

Furthermore, the digital entertainment division is expected to benefit from enhanced user engagement and gameplay improvement.

The strong performance of flagship games such as Free Fire and advancements in AI are projected to boost operational capabilities.

Additionally, SE’s e-commerce endeavors, particularly synergies with Shopee, are anticipated to elevate Gross Merchandise Volume (GMV) and drive top-line growth despite challenges such as the current macroeconomic environment, inflation, and rising interest rates.

Insights from the Model

According to the Zacks model, a positive Earnings ESP combined with a Zacks Rank #1, #2, or #3 increases the likelihood of an earnings beat. However, Sea Limited currently holds an Earnings ESP of 0.00% alongside a Zacks Rank #2.

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Potential Opportunities

For investors seeking promising options, NVIDIA (NVDA), boasting an Earnings ESP of +2.50% and a Zacks Rank #2, presents a compelling choice.

Agilent Technologies (A) and Applied Materials (AMAT) are also worth considering with Earnings ESPs of +0.72% and +0.31% respectively, both holding a Zacks Rank #3.

These companies are scheduled to announce their financial results in the coming weeks, providing opportunities for investors to evaluate.

Stay informed on upcoming earnings announcements by referring to the Zacks Earnings Calendar.