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

Sea Limited SE is set to release second-quarter 2022 results on Aug 16.

The Zacks Consensus Estimate for loss has widened by 1 cent to 92 cents per share over the past 30 days. Sea Limited reported a loss of 61 cents per share in the year-ago quarter.

The consensus mark for revenues is currently pegged at $3.05 billion, indicating 25.02% growth from the year-ago quarter’s reported figure.

The company’s earnings missed the Zacks Consensus Estimate in two of the trailing four quarters while beating the same in the remaining, the earnings surprise being -37.88%.

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 been the driving factor in the second quarter.

Garena is likely to have benefited from stabilizing the player base of Free Fire.

The company’s e-commerce segment is likely to have gained traction from a strong uptick in Shopee, its online shopping platform. Increasing monthly active users and improving engagement reflected by growing total time spent bode well for Shopee in the to-be-reported quarter.

In the first quarter, Shopee was the top-ranked app in the Shopping category across both iOS and Google Play by average monthly active users and total time spent in the app in each of Southeast Asia, Taiwan and Indonesia, per The momentum is expected to have continued in the to-be-reported quarter.

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 -2.72% 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:

Keysight KEYS has an Earnings ESP of +1.23% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is scheduled to release third-quarter fiscal 2022 results on Aug 17.

KEYS’ shares have fallen 19.3% in the year-to-date period compared with the Zacks Computer and Technology sector, which witnessed a fall of 21.2% over the same time frame.

Hewlett Packard Enterprise HPE has an Earnings ESP of +2.89% and a Zacks Rank #3.

HPE is scheduled to release third-quarter fiscal 2022 results on Aug 30. Hewlett Packard’s shares are down 7% in the year-to-date period.

Dell Technologies DELL has an Earnings ESP of +3.07% and a Zacks Rank #3.

DELL is scheduled to release second-quarter fiscal 2023 results on Aug 25. Dell’s shares are down 15.3% in the year-to-date period.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Dell Technologies Inc. (DELL): Free Stock Analysis Report
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