Latin American e-commerce and fintech company MercadoLibre (NASDAQ: MELI) will be reporting earnings this Wednesday after market close. Here’s what you need to know.
MercadoLibre beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $6.79 billion, up 33.8% year on year. It was a mixed quarter for the company, with impressive growth in its users but a miss of analysts’ EBITDA estimates. It reported 70.8 million daily active users, up 25.1% 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, analysts are expecting MercadoLibre’s revenue to grow 35.5% year on year to $7.20 billion, in line with the 35.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $9.37 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 6.7% on average.
Looking at MercadoLibre’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 2.1%, and Netflix reported revenues up 17.2%, in line with consensus estimates. Coursera traded down 12.7% following the results while Netflix was also down 10.1%.
Read our full analysis of Coursera’s results here and Netflix’s results here.
Investors in the consumer internet segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. MercadoLibre is down 8.6% during the same time and is heading into earnings with an average analyst price target of $2,877 (compared to the current share price of $2,286).
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