Why Sea Limited Stock Rocketed Higher on Tuesday

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Shares of Sea Limited (NYSE: SE) charged sharply higher Tuesday, gaining arsenic overmuch arsenic 14.8%. As of 11:48 a.m. ET, the banal was inactive up 12.8%.

The catalyst that sent the e-commerce, integer entertainment, and fintech specializer higher was its quarterly fiscal report, arsenic immoderate aspects were much amended than expected.

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Sea Limited logo connected a bluish inheritance with the motto connecting the dots.

Image source: The Motley Fool.

Game connected

For the 2nd quarter, Sea Limited generated gross of $7.8 billion, up an awesome 48% twelvemonth implicit year. The company's bottommost enactment accelerated, with nett income of $458 million, up 11%. This resulted successful adjusted net per stock (EPS) of $0.70.

To enactment those numbers successful context, analysts' statement estimates were calling for gross of $7.1 cardinal and EPS of $0.86. So contempt the bottom-line miss, investors celebrated the improvements.

Sea Limited proceed to nutrient beardown maturation crossed its trifecta of integer segments.

Its Shopee e-commerce conception delivered a record-setting quarter, with gross of $5.1 billion, up 45% twelvemonth implicit year, spurred by grounds gross merchandise measurement (GMV), bid volume, and revenue. CEO Forrest Li said the institution was "optimistic" that Shopee would execute $1 cardinal successful adjusted net earlier interest, taxes, depreciation, and amortization (EBITDA), a important profitability milestone for the segment.

Its Garena integer amusement conception posted gross of $697 million, which climbed 41%. Perhaps arsenic importantly, booking roseate 16% to $764 million, mounting the signifier for aboriginal growth. Quarterly progressive users of 666 cardinal edged somewhat higher, portion its paying idiosyncratic ratio climbed to 10.2% from 9.3% successful the prior-year quarter.

Last but not slightest was its Monee fintech segment, which generated integer fiscal services gross of $1.2 billion, up 58%. Overall, its indebtedness portfolio jumped 63% to $11.1 billion, portion non-performing loans remained unchangeable astatine 1% of full loans.

The institution continued its propulsion into Brazil, which remains its fastest-growing market.

Despite today's terms spike, Sea Limited remains attractively priced astatine little than 25 times adjacent year's expected earnings, a tenable terms for a institution that has delivered double-digit maturation successful each of its 3 segments.