Sea Limited SE is scheduled to report fourth-quarter 2024 results on March 04.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 76 cents per share, down 5% over the past 30 days. SE incurred a loss of 1 cent in the year-ago quarter.

The Zacks Consensus Estimate for revenues is pegged at $4.84 billion, suggesting year-over-year growth of 35.79%.

SE’s earnings missed the Zacks Consensus Estimate in the trailing four quarters, delivering a negative earnings surprise of 55.54%, on average.

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of Q4 Results

Sea Limited is expected to have benefited from a strong e-commerce performance despite a highly competitive environment, maintaining its mid-20% GMV growth guidance for the year. The holiday season, a key online shopping demand driver, likely boosted Shopee’s GMV and revenues. This continued momentum is anticipated to have strengthened the company’s performance in the to-be-reported quarter.

In the third quarter of 2024, Shopee achieved a positive adjusted EBITDA in both Asia and Brazil, highlighting its strong financial performance. With a continued focus on sustainable growth, the platform is likely to have continued gaining.

SeaMoney's loan book surged above 70% year over year in the third quarter of 2024, driven by strong credit demand in underserved markets. By leveraging Shopee’s user base and diverse funding sources, including asset-backed lending and digital banks, the company efficiently scaled its credit business. This momentum is expected to have benefited Sea Limited in the fourth quarter, as demand for digital financial solutions in emerging markets continued to rise.

Garena's (digital entertainment) total bookings grew 24% year over year, driven by strong engagement in its flagship game, Free Fire, which attracted more than 100 million daily active users worldwide. Strategic partnerships, including collaborations with YouTube, strengthened its presence in key markets like Indonesia by aligning with local trends. This momentum is expected to have benefited the company in the fourth quarter.

However, intensifying competition in the e-commerce sector, driven by regional and global players, is expected to have affected the quarter under review.

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 is not the case here.

Sea Limited has an Earnings ESP of -18.78% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Rigel Pharmaceuticals RIGL has an Earnings ESP of +100.00% and sports a Zacks Rank of #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

RIGL shares have returned 29.5% year to date. Rigel Pharmaceuticals is set to report fourth-quarter 2024 results on March 04.

Auna S.A. AUNA currently has an Earnings ESP of +26.67% and a Zacks Rank #2.

AUNA shares have gained 16.7% year to date. Auna is set to report fourth-quarter 2024 results on March 10.

Xeris Pharmaceuticals XERS has an Earnings ESP of +2.78% and a Zacks Rank #2 at present.

XERS shares have gained 16.7% year to date. Xeris Pharmaceuticals is set to report fourth-quarter 2024 results on March 06.

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Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report

Rigel Pharmaceuticals, Inc. (RIGL) : Free Stock Analysis Report

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Auna S.A. (AUNA) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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