Asian Equities Traded in the US as American Depositary Receipts Surge Higher in Thursday Trading

In its upcoming report, Sea Limited Sponsored ADR (SE) is predicted by Wall Street analysts to post quarterly earnings of $0.59 per share, reflecting an increase of 883.3% compared to the same period last year. Revenues are forecasted to be $4.12 billion, representing a year-over-year increase of 19.3%.

The current level reflects an upward revision of 14.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Given this perspective, it's time to examine the average forecasts of specific Sea Limited metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts' assessment points toward 'Revenue- Digital entertainment' reaching $468.85 million. The estimate indicates a change of -20.8% from the prior-year quarter.

Based on the collective assessment of analysts, 'Revenue- E-Commerce' should arrive at $3.02 billion. The estimate suggests a change of +35.2% year over year.

Analysts expect 'Revenue- Digital Financial Services' to come in at $535.47 million. The estimate indicates a change of +20% from the prior-year quarter.

Analysts predict that the 'Revenue- Other Services' will reach $33.58 million. The estimate suggests a change of -15.7% year over year.

The consensus among analysts is that 'Quarterly paying users' will reach 53. The estimate is in contrast to the year-ago figure of 41.

The average prediction of analysts places 'Quarterly active users' at 646. Compared to the present estimate, the company reported 544 in the same quarter last year.

It is projected by analysts that the 'Adjusted EBITDA- Digital Entertainment' will reach $311.44 million. Compared to the current estimate, the company reported $234 million in the same quarter of the previous year.

Analysts forecast 'Adjusted EBITDA- Digital Financial Services' to reach $170.10 million. The estimate compares to the year-ago value of $165.73 million.

View all Key Company Metrics for Sea Limited here>>>

Over the past month, shares of Sea Limited have returned -1.1% versus the Zacks S&P 500 composite's +3.2% change. Currently, SE carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here

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Sea Limited Sponsored ADR (SE) closed the latest trading day at $95.37, indicating a -0.39% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 2.53%. At the same time, the Dow added 3.57%, and the tech-heavy Nasdaq gained 2.95%.

Prior to today's trading, shares of the company had gained 0.43% over the past month. This has lagged the Computer and Technology sector's gain of 1.29% and the S&P 500's gain of 0.66% in that time.

The upcoming earnings release of Sea Limited Sponsored ADR will be of great interest to investors. The company's earnings report is expected on November 12, 2024. The company is expected to report EPS of $0.57, up 850% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.12 billion, up 19.31% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2 per share and revenue of $16.32 billion, indicating changes of +47.06% and +25.67%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Sea Limited Sponsored ADR. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.78% lower. Sea Limited Sponsored ADR is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Sea Limited Sponsored ADR has a Forward P/E ratio of 47.99 right now. Its industry sports an average Forward P/E of 30.69, so one might conclude that Sea Limited Sponsored ADR is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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Asian equities traded in the US as American depositary receipts were lower on Wednesday morning, down 1.2% to 2,064.56 on the S&P Asia 50 ADR Index.

From North Asia, the gainers were led by cryptocurrency miner Bit Mining and computer hardware maker Canaan , which advanced 8.1% and 5.7%, respectively. They were followed by capital market company AMTD IDEA Group , which climbed 3.3%.

The decliners from North Asia were led by solar module manufacturer Jinko Solar and carmaker Honda , which were falling nearly 13% and 8.7%, respectively. They were followed by Chinese photovoltaics company Daqo New Energy , which dropped 4%.

From South Asia, the gainers were led by pharmaceutical company Dr. Reddy's Laboratories , which was up 4.5%.

The decliners from South Asia were led by telecom Telekomunikasi Indonesia , which fell 1.9%, followed by ICICI Bank , which retreated 1.4%.

Dr. Reddy's Laboratories Limited RDY reported second-quarter fiscal 2025 earnings of 18 cents per American Depositary Share (ADS), which missed the Zacks Consensus Estimate of 19 cents per ADS. The company reported earnings of 21 cents per ADS in the year-ago quarter.

The bottom line was hit by a one-time acquisition cost and impairment charge on non-current assets.

Revenues grew 17% year over year to $957 million, which outpaced the Zacks Consensus Estimate of $879 million. The year-over-year improvement was primarily driven by growth in global generics revenues.

Shares of Dr. Reddy’s have risen 5% year to date compared with the industry’s 18.4% growth.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

RDY’s Q2 Results in Detail

Dr. Reddy’s reports revenues under three segments — Global Generics, Pharmaceutical Services & Active Ingredients (PSAI) and Others.

Global Generics revenues totaled INR 71.6 billion, up 17% year over year. The increase was primarily driven by improved sales volumes and new product launches.

Dr. Reddy’s launched four new products in the United States during the reported quarter.

As of Sept. 30, 2024, cumulatively, 80 generic filings were pending approval from the FDA (75 abbreviated new drug applications [ANDAs] and five new drug applications). Of these 75 ANDAs, 44 were Para IVs.

PSAI revenues amounted to INR 8,4 billion, up 20% from the year-ago level. The improvement was driven by momentum in base business volumes, growth in services business and revenues from new products.

Revenues in the Others segment totaled INR 0.2 billion, down 74% year overyear.

Gross margin improved to 59.6% from 58.7% in the year-ago quarter due to a favorable product mix and overhead leverage. However, the uptick was partially offset by price erosion in generics markets.

Research and development expenses jumped 33% year over year to $87 million, driven by ongoing development efforts across generics, biosimilars and novel oncology assets.

Selling, general and administrative expenses totaled $275 million, up 22% year over year, primarily owing to investments in business growth and other initiatives. The company also incurred a one-time acquisition related cost on the acquisition of Nicotine Replacement Therapy (‘NRT’) portfolio.

Dr. Reddy's Laboratories Ltd Price, Consensus and EPS Surprise

Dr. Reddy's Laboratories Ltd price-consensus-eps-surprise-chart | Dr. Reddy's Laboratories Ltd Quote

Key Pipeline Updates From RDY

Dr. Reddy’s acquired an NRT portfolio outside the United States and paid GBP 458 million in cash consideration pursuant to an agreement with Haleon plc.

The company entered into a non-exclusive patent licensing agreement with Takeda to commercialize vonoprazan, a novel gastrointestinal drug, in India.

Last month, RDY signed a voluntary licensing agreement with Gilead Sciences GILD to manufacture and commercialize lenacapavir in India and other countries.

GILD’s lenacapavir is indicated for the treatment of human immunodeficiency virus type 1 (HIV-1) infection in heavily treatment-experienced adults with multidrug resistant HIV-1 infection failing their current antiretroviral regimen due to resistance, intolerance, or safety considerations. Additionally, lenacapavir is currently under investigation for the prevention of HIV (PrEP).

Regulatory Updates

Dr. Reddy’s obtained marketing authorization from European Commission for the proposed biosimilar of rituximab following a positive opinion from the CHMP of the European Medicines Agency.

The company also received approval from the FDA for an investigational new drug application for AUR-112, a highly differentiated, potent and selective inhibitor of MALT1 being developed for the treatment of lymphoid malignancies.

The joint venture between Dr Reddy’s and Nestle India was operationalized in August 2024 to undertake the business of nutraceutical products and supplements in India and Nepal. 49% of the shares in the subsidiary have been transferred to Nestlé India.

RDY’s Zacks Rank & Other Stocks to Consider

Dr. Reddy’s currently carries a Zacks Rank #2 (Buy).

A couple of other top-ranked stocks in the same sector are Bausch Health BHC and Teva TEVA, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 30 days, the Zacks Consensus Estimate for BHC’s 2024 earnings per share (EPS) has moved north 12 cents to $3.73. During the same period, EPS estimate for 2025 has increased to $4.29 from $4.17.

BHC’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 0.32%.

In the past 30 days, estimates for TEVA’s EPS have moved up a cent to $2.44. TEVA’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 8.62%.

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