In This Article:
Latin American e-commerce and fintech company MercadoLibre (NASDAQ:MELI) will be reporting earnings tomorrow after the bell. Here’s what you need to know.
MercadoLibre beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $6.06 billion, up 37.4% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ number of unique active users estimates. It reported 67.3 million daily active users, up 23.7% year on year.
Is MercadoLibre a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting MercadoLibre’s revenue to grow 26.3% year on year to $5.47 billion, slowing from the 36% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.99 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MercadoLibre has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 8.2% on average.
Looking at MercadoLibre’s peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 83%, beating analysts’ expectations by 5.2%, and Etsy reported flat revenue, topping estimates by 1.4%. Etsy traded down 8% 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 18% on average over the last month. MercadoLibre is up 25% during the same time and is heading into earnings with an average analyst price target of $2,474 (compared to the current share price of $2,243).
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.