$SE: Earnings Set for 105% EPS Jump — Yet $46M Settlement Overhang Persists

Court: D. Arizona

Case: 2:23-cv-01455

Sea Limited SE closed at $185.25, down 4% in the latest session, underperforming the broader market. While shares have gained 2.9% in the past month, they lag behind both the tech sector’s +9.9% and the S&P 500’s +3.6%. Analysts expect Q3 EPS of $1.11 (+105% YoY) on revenue of $5.84B (+36.8%), fueling optimism for full-year EPS growth of +140%. Still, even as Sea delivers strong operating momentum, the shadow of a $46M legal settlement tied to past misstatements continues to weigh.

• $185.25 close, marking a -4% drop vs. S&P’s -0.55%.
• +2.9% stock gain over past month, but lags sector benchmarks.
• Q3 EPS expected at $1.11, revenue at $5.84B (+36.8% YoY).
• Full-year forecasts: $4.04 EPS and $23.2B revenue.
• $46M settlement over overstated Garena & Shopee growth still unresolved.

Timeline Overview

• Nov 15, 2022 — Sea claimed Garena & Shopee were showing strong growth.
• May 16, 2023 — Weak results reported; SE dropped 17%.
• Jul 21, 2023 — Investors filed lawsuit over misleading projections.
• Aug 15, 2023 — Business struggles continued; SE fell 29%.
• Mar 14, 2025 — $46M settlement agreement announced.

Allegations Include

• Overstating Garena and Shopee’s growth potential.
• Concealing falling user engagement trends.
• Providing misleading profitability forecasts.
• Inflating financial health of core segments.

Investor Update

Sea Limited’s $46M cash settlement resolves key investor claims but highlights credibility risks. While the deal reduces litigation uncertainty, the company must now deliver consistent growth across Garena and Shopee to restore investor trust and sustain valuation gains.

You can check more information about it HERE.