Benzinga | Mar 1, 2021 10:03AM EST

Sea's Earnings Outlook

Sea (NYSE:SE) releases its next round of earnings this Tuesday, March 02. Here is Benzinga's essential guide to Sea's Q4 earnings report.

What Are Earnings, Net Income, 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

Sea EPS loss is expected to be around $0.54, according to sell-side analysts. Sales will likely be near $1.90 billion. In the same quarter last year, Sea announced EPS of $0.53 on revenue of $909.09 million.

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

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, earnings would be down 1.89%. Revenue would be up 109.0% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.53 -0.42 -0.32 -0.30EPS Actual -0.69 -0.68 -0.52 -0.53Revenue Estimate 1.40 B 1.06 B 915.42 M 875.70 MRevenue Actual 1.21 B 1.28 B 913.92 M 909.09 M

Stock Performance

Shares of Sea were trading at $235.7 as of February 26. Over the last 52-week period, shares are up 407.6%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

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