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

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Sea Limited (SE - Free Report) is set to release its first-quarter 2023 results on May 16.

The Zacks Consensus Estimate for earnings has narrowed by 9 cents to 64 cents per share in the past 30 days. Sea reported a loss of 80 cents in the year-ago quarter.

The consensus mark for revenues is currently pegged at $3.28 billion, indicating a 26.61% growth from the year-ago quarter’s reported figure.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same in the remaining, the average earnings surprise being 69.65%.

Sea Limited Sponsored ADR Price and EPS Surprise

Let’s see how things have shaped up prior to this announcement.

Factors at Play for Q1 Results

Sea Limited’s digital financial services business is likely to have benefited from the diversification of overall service offerings to reach a broader user base.

Strong synergies with Shopee is expected to have aided Sea’s digital financial services business through its flexible payment options, successful credit and greater affordability.

Sea Limited expects its digital insurance wealth management service to enjoy synergies with its e-commerce platform to serve a large underserved community in the market.

Sea Limited’s cost-management initiatives, which include optimizing process management for customer services and reducing logistics costs, are expected to have boosted profitability.

On logistics, the company has been working to provide an efficient and reliable experience. This includes reducing wait time, minimizing delivery losses and providing seamless impact experience to sellers and buyers in managing logistics. These factors are expected to have driven the first-quarter top line.

However, Sea Limited has been suffering from a challenging macroeconomic environment, raging inflation, rising interest rates and a reversal of pandemic trends. The first-quarter 2023 results are expected to reflect these trends.

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 #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 some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

MakeMyTrip Limited (MMYT - Free Report) has an Earnings ESP of +78.95% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

MMYT shares have fallen 6.9% year to date. MakeMyTrip is set to report its fourth-quarter fiscal 2023 results on May 16.

NVIDIA (NVDA - Free Report) has an Earnings ESP of +2.43% and carries a Zacks Rank of 2.

NVIDIA shares have increased 95.5% year to date. NVDA is scheduled to report its first-quarter fiscal 2024 results on May 24.

Agilent Technologies (A - Free Report) has an Earnings ESP of +0.40% and a Zacks Rank #2.

Agilent’s shares have declined 14.7% year to date. A is scheduled to report second-quarter fiscal 2023 results on May 23.

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

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