Latin American e-commerce and fintech company MercadoLibre (NASDAQ: MELI) will be reporting results this Wednesday after the bell. Here’s what investors should know.
MercadoLibre beat analysts’ revenue expectations last quarter, reporting revenues of $8.85 billion, up 49% year on year. It was a strong quarter for the company, with impressive growth in its users and a narrow beat of analysts’ EBITDA estimates. It reported 84 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 43.3% year on year, improving from the 33.8% 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 consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 24.6%, beating analysts’ expectations by 2.6%, and Teladoc reported a revenue decline of 4%, falling short of estimates by 1.3%. Teladoc traded down 28.1% following the results.
Read our full analysis of EverQuote’s results here and Teladoc’s results here.
Investors in the consumer internet segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. MercadoLibre is up 5.4% during the same time and is heading into earnings with an average analyst price target of $2,215 (compared to the current share price of $1,904).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
