Latin American e-commerce company MercadoLibre (NASDAQ:MELI) will be announcing earnings results today after the bell. Here's what to look for.
Last quarter MercadoLibre reported revenues of $3 billion, up 40.9% year on year, beating analyst revenue expectations by 1.26%. It was a strong quarter for the company, with exceptional revenue growth and growing number of users. The company reported 97 million daily active users, up 18% year on year.
Is MercadoLibre buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting MercadoLibre's revenue to grow 28.2% year on year to $2.88 billion, slowing down from the 63.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.31 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing four upwards revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.
Looking at MercadoLibre's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Shutterstock delivered top-line growth of 8.11% year on year, beating analyst estimates by 1.77% and Teladoc reported revenues up 11.3% year on year, exceeding estimates by 1.78%. Shutterstock traded flat on the results, Teladoc was up 4.97%. Read our full analysis of Shutterstock's results here and Teladoc's results here.
There is still much uncertainty in the markets. The Federal Reserve's hawkish stance on rates, meant to tame inflation, remains a key market narrative. There is an added wrinkle now with troubles in the banking sector, trigger by Silicon Valley Bank's fairly sudden and surprising collapse. Given these, the question is whether higher rates (which dampen economic activity) and potentially less lending from the overall banking sector will trigger a recession. While some tech stocks have recovered year-to-date, most are still well off their 52-week highs. MercadoLibre is down 2.83% over the last month, and is heading into the earnings with analyst price target of $1,462.5, compared to share price of $1,265.
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The author has no position in any of the stocks mentioned.