E-commerce and gaming company Sea (NYSE: SE) will be announcing earnings results tomorrow before market open. Here’s what investors should know.
Sea beat analysts’ revenue expectations by 6.1% last quarter, reporting revenues of $4.95 billion, up 36.9% year on year. It was a strong quarter for the company, with impressive growth in its users and a decent beat of analysts’ EBITDA estimates. It reported 50.4 million users, up 27% year on year.
Is Sea a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sea’s revenue to grow 31.2% year on year to $4.90 billion, improving from the 22.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sea has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.5% on average.
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. eHealth delivered year-on-year revenue growth of 21.7%, beating analysts’ expectations by 13.4%, and EverQuote reported revenues up 83%, topping estimates by 5.2%. eHealth traded up 14.8% following the results while EverQuote was down 12.2%.
Read our full analysis of eHealth’s results here and EverQuote’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 15% on average over the last month. Sea is up 17.1% during the same time and is heading into earnings with an average analyst price target of $154.33 (compared to the current share price of $139.01).
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