Sea Q3 2022 preview: Are losses set to backside out this quarter? (NYSE:SE)

Sea (NYSE:SE) is scheduled to announce Q3 earnings outcomes on Tuesday, November fifteenth, earlier than market open.

The Singapore-based expertise firm reported blended second-quarter outcomes and suspended income steering for its e-commerce section, noting the “growing macro uncertainties.”

With the worldwide financial system more and more weakening as a consequence of rising rates of interest, slowing shopper exercise and geopolitical uncertainties, Sea (SE) stated it could “additional concentrate on effectivity and optimization for the long-term energy and profitability of the e-commerce enterprise.”

Throughout the trade, NPD Group information confirmed shopper videogame spending within the third quarter fell 5% vs. the identical interval in 2021, persevering with a string of robust comparisons for the trade towards an uncharacteristically sturdy prior yr.

Shares have taken a virtually 80% dive YTD over worries as a consequence of persistent inflation and a weak international financial system.

In direction of the top of Q3, it was reported Sea (SE) was firing 3% of its Shopee staff in Indonesia as a consequence of worsening macroeconomic circumstances.

Nonetheless, JPMorgan analyst Ranjan Sharma upgraded Sea (SE) to Obese from Impartial in early November, anticipating a “swift enchancment” within the firm’s profitability, with Q3 marking the height in its losses.

The consensus EPS Estimate is -$0.95 (-13.1% Y/Y) and the consensus Income Estimate is $3.01B (+11.5% Y/Y).

During the last 3 months, EPS estimates have seen 3 upward revisions and 1 downward. Income estimates have seen 0 upward revisions and 6 downward.

During the last 2 years, SE has crushed EPS estimates 25% of the time and has crushed income estimates 88% of the time.