SEA (NYSE:SE) Releases Quarterly Earnings Results, Misses Estimates By $0.21 EPS

SEA (NYSE:SE) announced its quarterly earnings data on Tuesday. The Internet company based in Singapore reported $0.78 earnings per share for the quarter, missing the consensus estimate of $0.99 by ($0.21), 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 for the quarter, compared to analysts’ expectations of $8.08 billion. During the same quarter in the previous year, the company earned $0.59 earnings per share. The company’s 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 Down 3.0%

Shares of NYSE:SE traded down $2.31 during midday trading on Wednesday, hitting $74.49. 3,917,910 shares of the company’s stock traded hands, compared to its average volume of 5,156,488. The firm’s fifty day moving average price is $93.29 and its two-hundred day moving average price is $97.38. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.48 and a current ratio of 1.49. SEA has a twelve month low of $71.53 and a twelve month high of $150.79. The company has a market cap of $45.52 billion, a PE ratio of 28.76, a P/E/G ratio of 0.80 and a beta of 1.58.

Recent SEA Headlines

These are some of the SE headlines that stood out recently:

• Neutral Sentiment: Traders bought substantially more SEA call options than usual, indicating increased options activity but not necessarily a lasting change in investor outlook. SEA call-options activity
• Negative Sentiment: EPS of $0.78 missed the cited consensus of $0.99. The earnings shortfall appears to have outweighed the revenue beat, contributing to the stock’s decline after results. Sea Q3 earnings
• Negative Sentiment: Investors may be concerned that Monee’s credit-loss provisions rose 82.3%, raising questions about lending risk and pressure on profitability. Sea Q3 growth and credit-loss provisions

Insider Buying and Selling at SEA

In other SEA news, 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 transaction, the insider directly owned 64,780 shares of the company’s stock, valued at $5,073,569.60. This trade represents a 1.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Feng Zhao sold 30,000 shares of the firm’s stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $80.22, for a total value of $2,406,600.00. Following the completion of the transaction, the insider directly owned 63,580 shares in the company, valued at $5,100,387.60. This trade represents a 32.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 874,536 shares of company stock valued at $97,313,140. 0.22% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of brokerages recently weighed in on SE. JPMorgan Chase & Co. reduced their target price on SEA from $173.00 to $149.00 and set an “overweight” rating on the stock in a report on Wednesday, October 28th. Wall Street Zen downgraded SEA from a “buy” rating to a “hold” rating in a report on Sunday, November 1st. Benchmark raised their price objective on SEA from $140.00 to $175.00 and gave the stock a “buy” rating in a report on Wednesday, August 12th. Bank of America set a $110.00 price objective on SEA and gave the company a “buy” rating in a research note on Wednesday. Finally, Arete Research upgraded SEA from a “neutral” rating to a “buy” rating and set a $152.00 target price for the company in a report on Monday, September 7th. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $135.64.

SEA Company Profile

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.