Sea Limited is set to release first-quarter 2021 results on May 18.
The Zacks Consensus Estimate for loss has been unchanged at 39 cents per share over the past 30 days. Sea Limited reported a loss of 52 cents per share in the year-ago quarter.
Moreover, the consensus mark for revenues is currently pegged at $2.07 billion, indicating 126.3% growth from the year-ago quarter’s reported figure.
The company’s earnings missed the Zacks Consensus Estimate in all of the trailing four quarters, the negative earnings surprise being 28.11%.
Sea Limited Sponsored ADR Price and EPS Surprise
Let’s see how things have shaped up prior to this announcement.
Factors at Play for Q1 Results
Sea Limited’s digital entertainment (Garena) and e-commerce businesses are expected to have continued to capitalize on the coronavirus outbreak and the holiday season in the first quarter.
Garena is likely to have benefited from the continued popularity of Free Fire. Per Sensor Tower data, the game was the eighth top-grossing mobile game worldwide in March 2021. It was also the third most-downloaded game in March 2021.
In fact, Free Fire overtook PUBG Mobile from Tencent TCEHY and Activision’s ATVI Call of Duty: Mobile as the top mobile Battle Royale game by player spending in the United States during first-quarter 2021.
Garena Free Fire generated roughly revenues of $100 million, up 4.5% year over year, per Sensor Tower data.
Moreover, the company’s e-commerce segment is likely to have gained traction from a strong uptick in Shopee, its online shopping platform. Additionally, SeaMoney’s strengthening integration with Shopee is expected to have aided Sea’s digital financial services business.
However, higher expenses related to the expansion of e-commerce services, and continued efforts to integrate the company’s mobile wallet services with the Shopee platform across different markets, are expected to have negatively impacted profitability in the to-be-reported quarter.
精彩评论