Sea Limited (SE - Free Report) is set to release first-quarter 2022 results on May 17.
The Zacks Consensus Estimate for loss has widened by 18% to 82 cents per share over the past 30 days. Sea Limited reported a loss of 62 cents per share in the year-ago quarter.
The consensus mark for revenues is currently pegged at $2.70 billion, indicating 28.6% growth from the year-ago quarter’s reported figure.
The company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters, the earnings surprise being -53.24%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play for Q1 Results
Sea Limited’s digital entertainment (Garena) and e-commerce businesses are expected to have continued to capitalize on changing consumer behavior in the first quarter.
Garena is likely to have benefited from the continued popularity 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. Additionally, SeaMoney’s strengthening integration with Shopee is expected to have aided Sea’s digital financial services business.
However, exit from India and France are expected to have hurt Shopee’s top-line growth.
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 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 a few companies worth considering, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle:
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% 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 May 18.
CSCO’s shares have fallen 23.3% in the year-to-date period compared with the Zacks Computer and Technology sector, which witnessed a fall of 26% over the same time frame.
Wix.com (WIX - Free Report) has an Earnings ESP of +15.09% and a Zacks Rank #2.
WIX is scheduled to release first-quarter 2022 results on May 16. Wix.com’s shares are down 63% in the year-to-date period.
Dell Technologies (DELL - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #3.
DELL is scheduled to release first-quarter fiscal 2023 results on May 26. Dell’s shares are down 21% in the year-to-date period.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Sea Limited (SE - Free Report) is set to release first-quarter 2022 results on May 17.
The Zacks Consensus Estimate for loss has widened by 18% to 82 cents per share over the past 30 days. Sea Limited reported a loss of 62 cents per share in the year-ago quarter.
The consensus mark for revenues is currently pegged at $2.70 billion, indicating 28.6% growth from the year-ago quarter’s reported figure.
The company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters, the earnings surprise being -53.24%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play for Q1 Results
Sea Limited’s digital entertainment (Garena) and e-commerce businesses are expected to have continued to capitalize on changing consumer behavior in the first quarter.
Garena is likely to have benefited from the continued popularity 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. Additionally, SeaMoney’s strengthening integration with Shopee is expected to have aided Sea’s digital financial services business.
However, exit from India and France are expected to have hurt Shopee’s top-line growth.
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 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 a few companies worth considering, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle:
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% 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 May 18.
CSCO’s shares have fallen 23.3% in the year-to-date period compared with the Zacks Computer and Technology sector, which witnessed a fall of 26% over the same time frame.
Wix.com (WIX - Free Report) has an Earnings ESP of +15.09% and a Zacks Rank #2.
WIX is scheduled to release first-quarter 2022 results on May 16. Wix.com’s shares are down 63% in the year-to-date period.
Dell Technologies (DELL - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #3.
DELL is scheduled to release first-quarter fiscal 2023 results on May 26. Dell’s shares are down 21% in the year-to-date period.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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