Benzinga | Nov 16, 2020 10:04AM EST

Earnings Preview for Sea

On Tuesday, November 17, Sea (NYSE: SE) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, Sea analysts modeled for a loss of $0.53 per share on sales of $1.40 billion. In the same quarter last year, Sea reported EPS of $0.48 on revenue of $763.26 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, quarterly profit would be down 10.42%. Sales would be up 83.42% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate -0.42 -0.32 -0.30 -0.53EPS Actual -0.68 -0.52 -0.53 -0.48Revenue Estimate 1.06 B 915.42 M 875.70 M 700.71 MRevenue Actual 1.28 B 913.92 M 909.09 M 763.26 M

Stock Performance

Over the last 52-week period, shares of Sea are up 378.49%.

Do not be surprised to see the stock move on comments made during its conference call. Sea is scheduled to hold the call at 07:30:00 ET and can be accessed here.