SEA (NYSE:SE) Posts Earnings Results, Misses Expectations By $0.26 EPS

SEA (NYSE:SE) released its quarterly earnings results on Tuesday. The Internet company based in Singapore reported $0.78 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.04 by ($0.26), FiscalAI reports. SEA had a return on equity of 13.54% and a net margin of 5.98%. The company had revenue of $8.58 billion during the quarter, compared to the consensus estimate of $8.08 billion. During the same period in the previous year, the company earned $0.59 earnings per share. SEA’s quarterly revenue was up 43.7% on a year-over-year basis.

Here are the key takeaways from SEA’s conference call:

• Sea reported $8.6 billion in third-quarter revenue, $931 million in adjusted EBITDA and $502 million in net income; management also plans an additional $1 billion share repurchase after nearly completing its prior program.
• Shopee posted 23% GMV growth and 26% order growth, with adjusted EBITDA rising 45% to $269 million, its highest quarterly result. Sea reaffirmed its 2026 targets of around 25% GMV growth and $1 billion in adjusted EBITDA, while noting that investment continues to absorb some monetization gains.
• Monee’s loan book grew 60% to $12.6 billion, serving nearly 44 million active credit users, and Sea is considering a standalone listing in one to three years. Its 90-day NPL ratio was 1.3%, a modest increase that management attributed partly to market and product mix, prompting tighter underwriting in selected segments.
• Garena bookings increased 6% to $890 million and adjusted EBITDA rose 46% to $458 million, supported by Free Fire and Arena of Valor engagement.
• Sea Cloud is an early-stage AI initiative intended to sell the company’s internal capabilities to external organizations, but it has not secured enterprise contracts. Management described it as a long-term opportunity and said investments will be selective, tied to customer commitments and attractive returns.

SEA Stock Up 2.1%

Shares of NYSE:SE traded up $1.63 during trading hours on Tuesday, hitting $79.59. The company’s stock had a trading volume of 10,295,845 shares, compared to its average volume of 5,120,915. The company has a market capitalization of $48.63 billion, a price-to-earnings ratio of 30.81, a P/E/G ratio of 0.83 and a beta of 1.58. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.49 and a quick ratio of 1.48. SEA has a 52 week low of $71.53 and a 52 week high of $159.09. The firm’s fifty day moving average price is $94.01 and its 200 day moving average price is $97.61.

SEA News Roundup

Here are the key news stories impacting SEA this week:

• Positive Sentiment: Q3 revenue rose 43.4% year over year to $8.6 billion, above the $8.08 billion consensus. Net income increased 34% to $502.5 million, gross profit rose 51.4% to $3.9 billion, and adjusted EBITDA grew 28.9% to $931.3 million. Sea Limited Q3 results
• Positive Sentiment: Shopee continued to drive growth, with gross merchandise value up 23.3% to $39.7 billion; Monee revenue grew 63.9%, and Garena EBITDA increased 45.9%. Sea Limited growth and quarterly profit
• Neutral Sentiment: An insider sold 800 shares in each of two disclosed transactions. The sales were small relative to the insider’s remaining holdings and may have limited significance for the investment outlook. SEC insider transaction filing
• Negative Sentiment: GAAP EPS was $0.78, below the $1.04 analyst consensus. Higher credit-loss provisions at Monee—up 82.3%—also raise concerns about lending risk and could help explain the negative reaction reported in premarket trading despite revenue growth. Sea Q3 expectations and stock reaction

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on SE shares. TD Cowen reissued a “hold” rating and issued a $115.00 target price (up from $100.00) on shares of SEA in a report on Monday, August 17th. Morgan Stanley reaffirmed an “overweight” rating and set a $153.00 price objective on shares of SEA in a research report on Thursday, August 13th. Benchmark raised their price target on SEA from $140.00 to $175.00 and gave the company a “buy” rating in a report on Wednesday, August 12th. Arete Research raised SEA from a “neutral” rating to a “buy” rating and set a $152.00 price target for the company in a research note on Monday, September 7th. Finally, Barclays raised their price objective on SEA from $122.00 to $156.00 and gave the company an “overweight” rating in a research note on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, SEA presently has a consensus rating of “Moderate Buy” and an average price target of $137.73.

Insider Activity

In other SEA news, insider Feng Zhao sold 30,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $80.22, for a total transaction of $2,406,600.00. Following the transaction, the insider owned 63,580 shares in the company, valued at approximately $5,100,387.60. This represents a 32.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Yanjun Wang sold 800 shares of the firm’s stock in a transaction dated Monday, November 9th. The stock was sold at an average price of $78.32, for a total value of $62,656.00. Following the completion of the transaction, the insider owned 64,780 shares of the company’s stock, valued at approximately $5,073,569.60. The trade was a 1.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 876,036 shares of company stock valued at $97,506,130. Insiders own 0.22% of the company’s stock.

About SEA

Sea Limited is a Singapore-based technology company operating digital entertainment, e-commerce and digital financial services businesses. Founded in 2009 as Garena, the company adopted the name Sea Limited in 2017. Its digital entertainment business, Garena, publishes and develops online games and also provides a platform for users to access games and connect with other players. Shopee, Sea’s e-commerce platform, serves consumers and merchants in Southeast Asia and other markets, including Taiwan and parts of Latin America.