Sea Limited SE is scheduled to report third-quarter 2024 results on Nov. 12.

The Zacks Consensus Estimate for third-quarter earnings per share (EPS) has remained unchanged at 59 cents in the past 30 days. SE reported EPS of 6 cents in the year-ago quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $4.12 billion, suggesting growth of 19.31% year over year.

SE’s earnings missed the Zacks Consensus Estimate in all the trailing four quarters, delivering a negative earnings surprise of 75.70%, on average.

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

Factors to Note

SE’s third-quarter performance is expected to have benefited from its core businesses, which include e-commerce (Shopee), digital financial services (SeaMoney) and digital entertainment (Garena).

Sea Limited expects Shopee to report positive adjusted EBITDA in the third quarter of 2024 due to its strong market share in Southeast Asia, improving ad take rates, and enhanced logistics efficiency.

Sea Limited is focusing on improving its ad take rate, which is currently below the industry average. The company has already seen positive results, with a 20% year-over-year increase in sellers paying for ads in the second quarter of 2024. This improvement in ad monetization is expected to have continued benefiting the company in the to-be-reported quarter.

SE also benefits from the growing demand for logistics operations, which adds to reduced order costs. This is likely to have improved customer experience, driven by its courier delivery platform, SPX Express.
 
Expanding digital financial services to customers is likely to have driven user and revenue growth in the quarter under review.

SeaMoney’s loan book is expected to continue expanding, with a growing number of users and increasing loan sizes. The strong growth in consumer and SME credit businesses, particularly through Shopee and its Off-Shopee initiatives, is expected to have contributed positively to Sea Limited’s revenues in the to-be-reported quarter.

Free Fire’s continued popularity, with over 100 million daily active players, is expected to remain a significant revenue driver for Sea Limited. Additionally, the launch of new games like Need for Speed: Mobile in select markets is expected to have further boosted the Digital Entertainment segment in the third quarter.

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 exact case here. 

Sea Limited has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re 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:

Shopify SHOP has an Earnings ESP of +5.78% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shopify shares have gained 41.8% year to date. SHOP is set to report its third-quarter 2024 results on Nov. 12.

Bilibili BILI has an Earnings ESP of +10.00% and a Zacks Rank of 2 at present.

Bilibili shares have gained 70% year to date. BILI is set to report its third-quarter 2024 results on Nov. 14.

NVIDIA NVDA has an Earnings ESP of +2.30% and a Zacks Rank of 2 at present.

NVIDIA shares have gained 217.1% year to date. NVDA is set to report its third-quarter fiscal 2025 results on Nov. 20.

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