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The Zacks Consensus Estimate for earnings has been unchanged at 55 cents in the past 30 days. Sea reported a loss of 66 cents in the year-ago quarter.
The consensus mark for revenues is currently pegged at $3.29 billion, indicating a 12.26% growth from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing the same in the remaining, the average earnings surprise being 75.93%.
Let’s see how things have shaped up before this announcement.
Factors at Play for Q3 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. The Zacks Consensus Estimate for third-quarter 2023 digital financial services revenues is pegged at $453 million, indicating a year-over-year growth of 38.5%.
Strengthening user engagement and enhancing gameplay is expected to benefit Sea Limited’s digital entertainment business in the to-be-reported quarter. Significant launches in its game pipeline and developments with AI are expected to have improved game operations in the Garena platform.
Strong synergies with Shopee are expected to have aided Sea’s e-commerce business through improved AI-powered capabilities, flexible payment options and greater affordability.
Sea Limited’s cost-management initiatives, including optimizing process management for customer services and reducing logistics costs, are expected to have boosted profitability.
The company has been working on logistics to provide an efficient and reliable experience. This includes reducing wait time, minimizing delivery losses and providing a seamless impact experience to sellers and buyers in managing logistics. These factors are expected to have driven the third-quarter top line.
Sea Limited suffered from a challenging macroeconomic environment, inflation, and rising interest rates. The third-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 (Hold). 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 you may want to consider, as our model shows that these have the right combination of elements to post earnings beat in their upcoming releases:
Image: Bigstock
Sea Limited (SE) to Report Q3 Earnings: What's in Store?
Sea Limited (SE - Free Report) is set to release its third-quarter 2023 results on Nov 14.
The Zacks Consensus Estimate for earnings has been unchanged at 55 cents in the past 30 days. Sea reported a loss of 66 cents in the year-ago quarter.
The consensus mark for revenues is currently pegged at $3.29 billion, indicating a 12.26% growth from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing the same in the remaining, the average earnings surprise being 75.93%.
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 before this announcement.
Factors at Play for Q3 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. The Zacks Consensus Estimate for third-quarter 2023 digital financial services revenues is pegged at $453 million, indicating a year-over-year growth of 38.5%.
Strengthening user engagement and enhancing gameplay is expected to benefit Sea Limited’s digital entertainment business in the to-be-reported quarter. Significant launches in its game pipeline and developments with AI are expected to have improved game operations in the Garena platform.
Strong synergies with Shopee are expected to have aided Sea’s e-commerce business through improved AI-powered capabilities, flexible payment options and greater affordability.
Sea Limited’s cost-management initiatives, including optimizing process management for customer services and reducing logistics costs, are expected to have boosted profitability.
The company has been working on logistics to provide an efficient and reliable experience. This includes reducing wait time, minimizing delivery losses and providing a seamless impact experience to sellers and buyers in managing logistics. These factors are expected to have driven the third-quarter top line.
Sea Limited suffered from a challenging macroeconomic environment, inflation, and rising interest rates. The third-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 (Hold). 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 you may want to consider, as our model shows that these have the right combination of elements to post earnings beat in their upcoming releases:
Synopsys (SNPS - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #2. You can find the complete list of today’s Zacks #1 Rank stocks here.
Synopsys is set to announce fourth-quarter and fiscal year 2023 results on Nov 29. SNPS’ shares are up 58.3% year to date.
Snowflake (SNOW - Free Report) has an Earnings ESP of +15.71% and a Zacks Rank #2.
Snowflake is set to announce third-quarter 2023 results on Nov 29. SNOW’s shares have returned 8.9% year to date.
Anterix (ATEX - Free Report) has an Earnings ESP of +12.57% and a Zacks Rank #3.
Anterix is set to announce its second-quarter fiscal 2024 results on Nov 13. ATEX’s shares have lost 7.8% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.