Southeast Asia internet services giant Sea Limited (SE) on Tuesday missed expectations for the first quarter as its video game unit underperformed. SE stock tumbled in early trading.
The Singapore-based company earned 15 cents a share on sales of $3.04 billion in the March quarter. However, analysts polled by FactSet had expected Sea earnings of 68 cents a share on sales of $3.06 billion. In the year-earlier period, Sea lost 80 cents a share on sales of $2.9 billion.
Sea operates three businesses across digital entertainment, e-commerce and financial services, known as Garena, Shopee and SeaMoney, respectively.
Garena is a global online games developer and publisher. Shopee is the largest pan-regional e-commerce platform in Southeast Asia and Taiwan. SeaMoney is a leading digital payments and financial services provider in Southeast Asia.
Sea Stock Dives After Earnings Report
In the first quarter, Sea’s digital entertainment revenue plummeted 52.5% to $540 million. Meanwhile, the company’s e-commerce and other services saw sales jump 50.7% to $2.26 billion. Sales of goods dipped 8.7% to $242 million.
In premarket trading on the stock market today, SE stock fell 7.5% to 81.44.
Sea stock had been climbing ahead of the first-quarter report. The company reported the first quarterly profit in its 14-year history in March with its fourth-quarter results.
SE Stock Ranks Fourth In Group
“Across our business, we have been focused on maximizing operational efficiency and improving user experiences,” Chief Executive Forrest Li said in a news release.
He added, “As we continue to fine-tune our operations and navigate near-term macro uncertainties, we remain highly confident in the long-term opportunities in our markets and our ability to capture those profitably.”
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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