E-commerce and gaming company Sea (NYSE:SE) will be reporting earnings tomorrow morning. Here’s what investors should know.
Last quarter Sea reported revenues of $3.31 billion, up 4.9% year on year, beating analyst revenue expectations by 3.1%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth. The company reported 40.5 million users, down 21.4% year on year.
Is Sea buy or sell heading into the earnings? Read our full analysis here, it’s free.
This quarter analysts are expecting Sea’s revenue to grow 2.9% year on year to $3.55 billion, slowing down from the 7.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St’s revenue estimates twice over the last two years.
Looking at Sea’s peers in the online marketplace segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Robinhood delivered top-line growth of 23.9% year on year, beating analyst estimates by 4% and CarGurus reported revenue decline of 22.2% year on year, exceeding estimates by 1.5%. Robinhood traded up 12.8% on the results, and CarGurus was down 15%.
Read our full analysis of Robinhood’s results here and CarGurus’s results here.
There has been positive sentiment among investors in the online marketplace segment, with the stocks up on average 9.5% over the last month. Sea is up 21.6% during the same time, and is heading into the earnings with with analyst price target of $55, compared to share price of $50.9.
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