Sea Earnings Are Coming: What to Watch

Sea Limited (NYSE:SE) is scheduled to announce Q2 earnings results before market opens on Tuesday, Aug 16.

Latest Results

SEA last announced its earnings results on Tuesday, May 17th. The Internet company based in Singapore reported ($1.04) EPS for the quarter, beating the consensus estimate of ($1.06) by $0.02.

SEA had a negative return on equity of 35.06% and a negative net margin of 19.85%.

The company had revenue of $2.90 billion for the quarter, compared to analyst estimates of $2.86 billion.

During the same quarter in the prior year, the company earned ($0.82) EPS.

The firm’s revenue for the quarter was up 64.4% compared to the same quarter last year.

Company Guidance

Given the elevated macro uncertainties, The firm see a wider dispersion of potential scenarios for Shopee for the full year of 2022 and hence are revising its e-commerce guidance to correspondingly reflect this view.

The company downward revised their E-Commerce revenue expectations, now expecting revenue of $8.5-9.1 billion, down from the prior guidance of $8.9-9.1 billion.

While the top-end of the guidance range was reiterated, the wider and lower range takes into account the uncertainties around the global macro-environment, specifically around the Asia-Pacific region.

Analyst Opinions

Several equities research analysts recently commented on SE shares.

HSBC cut their target price on SEA from $150.00 to $145.00 in a research report on Wednesday, May 4th.

The Goldman Sachs Group cut their price target on SEA from $196.00 to $190.00 and set a “buy” rating on the stock in a report on Tuesday, May 17th.

CICC Research began coverage on SEA in a report on Wednesday, April 27th. They issued an “outperform” rating on the stock.

Daiwa Capital Markets cut their price target on SEA from $130.00 to $110.00 in a report on Thursday, July 28th.

Finally, Citigroup cut their price target on SEA from $156.00 to $145.00 in a report on Tuesday, July 26th.

Two investment analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the stock.

According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $197.94.