Stock Story -
E-commerce and gaming company Sea (NYNYSE:SE:SE) will be reporting results tomorrow before the bell. Here's what you need to know.
Sea beat analysts' revenue expectations by 4.5% last quarter, reporting revenues of $3.79 billion, up 27.8% year on year. It was an exceptional quarter for the company: Sea increased its number of users. It also beat on the GMV (gross merchandise value) line for e-commerce and the bookings line for Digital Entertainment. This led to consolidated revenue and adjusted EBITDA outperformance versus Wall Street's estimates.
Is Sea a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Sea's revenue to grow 20% year on year to $3.72 billion, improving from the 12.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 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 missed Wall Street's revenue estimates three times over the last two years.
Looking at Sea's peers in the online marketplace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. MercadoLibre (NASDAQ:MELI) delivered year-on-year revenue growth of 41.5%, beating analysts' expectations by 8.3%, and EverQuote reported revenues up 72.3%, topping estimates by 13.9%. MercadoLibre traded up 10.7% following the results while EverQuote was also up 11.7%.
Read the full analysis of MercadoLibre's and EverQuote's results on StockStory.
Inflation fears have put pressure on growth stocks, and while some of the online marketplace stocks have fared somewhat better, they have not been spared, with share prices down 8.2% on average over the last month. Sea is down 9.6% during the same time and is heading into earnings with an average analyst price target of $79 (compared to the current share price of $65).
