Internet services giant in Southeast Asia sea ltd (SE) on Tuesday beat expectations for the first quarter as its video game unit underperformed. SE shares fell on the news.
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The Singapore-based company took a 15-cent share of $3.04 billion in sales in the March quarter. However, analysts polled by FactSet expected Sea to earn 68 cents per share on sales of $3.06 billion. In the same period last year, Sea lost 80 cents of its share on sales of $2.9 billion.
Sea operates three companies across digital entertainment, e-commerce, and financial services, known as Garena, Shopee, and SeaMoney, respectively.
Garena is a global developer and publisher of online games. Shopee is the largest regional e-commerce platform in Southeast Asia and Taiwan. SeaMoney is a leading provider of digital payments and financial services in Southeast Asia.
Sea stocks plunge after earnings report
In the first quarter, Sea’s digital entertainment revenue fell 52.5% to $540 million. Meanwhile, the company’s e-commerce and other services saw sales jump 50.7% to $2.26 billion. Merchandise sales fell 8.7% to $242 million.
In today’s stock market morning trade, SE stock was down 12.2%, at 77.29.
Sea stocks were rising ahead of the first quarter report. The company reported its first quarterly earnings in its 14-year history in March with fourth-quarter results.
SE stock formed a cup bottom with a buy point of 88.94, according to IBD MarketSmith weekly charts.
SE stock ranks fourth in the group
“Across our business, we’ve focused on maximizing operational efficiencies and improving user experiences,” said CEO Forrest Lee. New release.
He added, “As we continue to adjust our operations and navigate macro uncertainties in the near term, we remain very confident in the long-term opportunities in our markets and our ability to capture those opportunities profitably.”
SE stock ranks fourth among 59 stocks in IBD’s retail and internet industry group, according to IBD stock check. It has an IBD composite rating of 88 out of 99.
Follow Patrick Seitz on Twitter at @employee For more stories on consumer technologies, software and semiconductor stocks.
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