Benzinga | May 17, 2021 10:10AM EDT

Sea's Earnings Outlook

On Tuesday, May 18, Sea (NYSE:SE) will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects an EPS loss of $0.53 and sales around $1.81 billion. In the same quarter last year, Sea reported a loss per share of $0.52 on sales of $913.92 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 report earnings in line when it publishes results Tuesday, earnings would be down 1.92%. Sales would be have grown 98.05% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past: Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate -0.54 -0.53 -0.42 -0.32EPS Actual -0.87 -0.69 -0.68 -0.52Revenue Estimate 1.91 B 1.40 B 1.06 B 915.42 MRevenue Actual 1.57 B 1.21 B 1.28 B 913.92 M

Stock Performance

Shares of Sea were trading at $216.72 as of May 14. Over the last 52-week period, shares are up 221.58%. Given that these returns are generally positive, long-term shareholders are probably 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 07:30:00 ET and can be accessed here.