By Sam Boughedda
Sea Ltd (NYSE:SE) shares tumbled more than 14% Tuesday after the company reported earnings, missing the analyst consensus revenue estimate.
However, earnings topped estimates, with Sea Ltd posting a second-quarter loss of $0.61 per share, $0.53 above the analyst estimate of a loss of $1.14 per share.
Revenue which rose 29% year-over-year, came in at $2.9 billion versus the consensus estimate of $2.99 billion.
While its results were mixed, investors were disappointed with the company revealing it suspended e-commerce revenue guidance for the full year 2022. The company said it made the decision to adapt to increasing macro uncertainties.
“As we navigate the current environment of increased macro uncertainty with that same nimble and decisive approach, we believe it is vital to be thoughtful, prudent, and disciplined. While we have strong resources and are well on-track to achieve our self-sufficiency targets, we are nevertheless rapidly prioritizing profitability and cash flow management," said Forrest Li, Sea’s Chairman and Group Chief Executive Officer.
Following the report, Citi analyst Alicia Yap lowered the price target on Sea Ltd to $129 from $145, maintaining a Buy rating.