Earnings to watch: Sea (SE) reports Q3 results tomorrow

E-commerce and gaming company Sea (NYSE:SE) will be announcing earnings results this Tuesday before market hours. Here’s what investors should know.

Sea beat analysts’ revenue expectations last quarter, reporting revenues of $7.74 billion, up 44.5% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and solid growth in its users. It reported 68.1 million users, up 10.2% year on year.

Is Sea a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Sea’s revenue to grow 31.4% year on year, slowing from the 40.7% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sea has a history of exceeding Wall Street’s expectations.

Looking at Sea’s peers in the online marketplace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 7.6%, and Etsy reported revenues up 10.9%, topping estimates by 3.8%. EverQuote traded up 19.9% following the results while Etsy was also up 4.5%.

Read our full analysis of EverQuote’s results here and Etsy’s results here.

Investors in the online marketplace segment have had steady hands going into earnings, with share prices flat over the last month. Sea is down 21% during the same time and is heading into earnings with an average analyst price target of $148.25 (compared to the current share price of $75.73).

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