Sea Limited to Post Q4 Earnings: What's in Store for the Stock?

Core Viewpoint - Sea Limited is expected to report its fourth-quarter 2024 results on March 04, with earnings estimates showing a decline compared to the previous year, while revenue is projected to grow significantly year-over-year [1][2]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter earnings is 76 cents per share, reflecting a 5% decrease over the past 30 days, compared to a loss of 1 cent in the same quarter last year [2]. - Revenue estimates stand at $4.84 billion, indicating a year-over-year growth of 35.79% [2]. - Sea Limited has missed earnings estimates in the last four quarters, with an average negative surprise of 55.54% [2]. Key Growth Drivers - Sea Limited is anticipated to benefit from strong e-commerce performance, maintaining mid-20% GMV growth guidance, bolstered by the holiday shopping season [4]. - Shopee achieved positive adjusted EBITDA in both Asia and Brazil during Q3 2024, indicating strong financial performance and sustainable growth [5]. - SeaMoney's loan book increased over 70% year-over-year in Q3 2024, driven by strong credit demand in underserved markets, which is expected to positively impact Q4 results [6]. - Garena's total bookings grew 24% year-over-year, supported by high engagement in its flagship game, Free Fire, which has over 100 million daily active users [7]. Competitive Landscape - The e-commerce sector is facing intensifying competition from regional and global players, which is likely to have impacted Sea Limited's performance in the fourth quarter [8]. Earnings Expectations - According to the Zacks model, Sea Limited has an Earnings ESP of -18.78% and a Zacks Rank of 3, indicating lower odds of an earnings beat [9].