Sea recently reported a robust financial performance, with its full-year 2024 earnings showing significant revenue growth to USD 16,820 million and net income rising to USD 444 million. This was reflected in an earnings per share increase to 0.77 from 0.27 the previous year, suggesting improved profitability and potentially explaining the company's 10.51% share price rise in the last quarter. The earnings announcement on March 4, 2025, alongside a scheduled earnings call, likely drew investor attention amidst a broader market context marked by volatility, especially with major indices like the Nasdaq Composite sliding by 1.7% and a decline in tech stocks. While Sea's earnings defied the trend of broader economic concerns and stock market declines, such as Adobe's weak outlook, the company showcased resilience, potentially positioning it favorably against such market pressures during a period of general economic uncertainty.

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Over the past five years, Sea Limited (NYSE:SE) achieved a remarkable total return of 208.91%, showcasing impressive share price growth and dividends. Despite a challenging environment for technology sectors, Sea has excelled with their earnings expansion, notably growing profits by 33.7% annually, and achieving profitability during this period. Key to their performance was an upward momentum in earnings growth and exceeding both the US market and the Entertainment industry over the past year. This demonstrates the company's capacity to outperform despite sector headwinds.

Several contributing factors bolster Sea's successful long-term performance. Their stock has been trading below estimated fair value, suggesting investors see potential upside. Moreover, despite low current return on equity compared to benchmarks, analysts remain optimistic, suggesting a future improvement to 20.3%. Meanwhile, revenue growth, forecasted at 14.5% annually, outpaces the broader US market, reinforcing confidence in Sea's robust financial trajectory. These elements underline Sea's favorable market positioning over the broader five-year horizon.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:SE.

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