Latin American e-commerce and fintech company MercadoLibre (NASDAQ: MELI) will be reporting earnings this Wednesday after market hours. Here’s what investors should know.
MercadoLibre beat analysts’ revenue expectations last quarter, reporting revenues of $10.17 billion, up 49.8% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and impressive growth in its users. It reported 89 million daily active users, up 25.4% year on year.
Is MercadoLibre a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting MercadoLibre’s revenue to grow 43.7% year on year, improving from the 39.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. MercadoLibre has a history of exceeding Wall Street’s expectations.
Looking at MercadoLibre’s peers in the online marketplace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 7.6%, and Etsy reported revenues up 10.9%, topping estimates by 3.8%. Etsy traded up 4.5% following the results.
Read our full analysis of EverQuote’s results here and Etsy’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 4.7% on average over the last month. MercadoLibre is down 9.6% during the same time and is heading into earnings with an average analyst price target of $2,272 (compared to the current share price of $1,682).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
