E-commerce and gaming company Sea (NYSE: SE) will be reporting earnings this Tuesday morning. Here’s what to expect.
Sea beat analysts’ revenue expectations last quarter, reporting revenues of $6.82 billion, up 37.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ revenue estimates but a miss of analysts’ EBITDA estimates. It reported 58 million users, up 15.1% year on year.
Is Sea a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sea’s revenue to grow 30% year on year, slowing from the 35.2% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sea has a history of exceeding Wall Street’s expectations.
Looking at Sea’s peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 14.5%, beating analysts’ expectations by 5.7%, and Cars.com reported flat revenue, in line with consensus estimates. EverQuote traded up 63% following the results while Cars.com was also up 4.4%.
Read our full analysis of EverQuote’s results here and Cars.com’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 6.2% on average over the last month. Sea’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $138.27 (compared to the current share price of $86.85).
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