Sea Limited Gears Up to Report Q1 Earnings: What's in the Offing?

Sea Limited SE is set to report first-quarter 2025 results on May 13.

The Zacks Consensus Estimate for SE’s first-quarter earnings is pegged at 93 cents per share, unchanged over the past 30 days. Sea Limited reported earnings of 21 cents per share in the year-ago quarter.

The Zacks Consensus Estimate for revenues is pegged at $4.91 billion, suggesting year-over-year growth of 29.7%.

Sea Limited’s earnings missed the Zacks Consensus Estimate in the trailing four quarters, delivering an average negative surprise of 22.65%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Sea Limited Sponsored ADR Price and EPS Surprise

 

Sea Limited Sponsored ADR price-eps-surprise | Sea Limited Sponsored ADR Quote

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

Key Factors to Note for SE’s Q1 Results

Sea Limited’s first-quarter 2025 results are expected to have benefited from the continued expansion of its digital financial services, particularly in consumer and SME lending across Southeast Asia and Brazil. The credit segment, which remains the key revenue driver, recorded a more than 60% year-over-year loan book surge in the fourth quarter of 2024. With ongoing improvements in credit penetration, this segment is well-positioned to have driven robust revenue expansion in the quarter.

Garena, a global leader in online gaming. Its Free Fire franchise is expected to have delivered a strong performance in the first quarter of 2025, driven by the high-profile NARUTO SHIPPUDEN collaboration launched in January. This partnership brought new content and excitement to the game, driving robust user engagement. The success of this launch is expected to have supported Garena’s growth trajectory and enhanced revenue performance in the quarter under review.

The company’s end-to-end logistics integration, particularly via SPX Express, is expected to have contributed positively to the first-quarter 2025 performance. SPX Express continued to raise service standards, with faster and more reliable deliveries across Southeast Asia. Nearly 50% of SPX Express parcels in Asia are delivered within two days, indicating year-over-year gains, and are likely to have improved customer experience and platform retention.

However, seasonal softness in the e-commerce sector during the early part of the year is expected to have posed headwinds for Shopee’s growth momentum in the first quarter of 2025.

In addition, the competitive landscape in e-commerce has been highly competitive, potentially pressuring take rates and requiring ongoing investment in service quality.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

Sea Limited has an Earnings ESP of -4.84% and a Zacks Rank #3 (Hold). 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:

Workday WDAY currently has an Earnings ESP of +2.24% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

WDAY is set to report first-quarter fiscal 2026 results on May 22. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.99 per share. The consensus estimate indicates year-over-year growth of 14.37%.

CyberArk Software CYBR has an Earnings ESP of +3.90% and a Zacks Rank #3 at present.

CYBR is set to report first-quarter 2025 results on May 13. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 79 cents per share. The consensus estimate indicates a year-over-year increase of 5.33%.

Applied Materials AMAT currently has an Earnings ESP of +1.94% and a Zacks Rank #3.

AMAT is scheduled to release first-quarter 2025 results on May 15. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $2.31 per share. The consensus estimate indicates a year-over-year rise of 10.53%.

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

Zacks Investment Research