Latin American e-commerce and fintech company MercadoLibre (NASDAQ:MELI) will be announcing earnings results tomorrow afternoon. Here’s what to expect.
MercadoLibre beat analysts’ revenue expectations by 8.3% last quarter, reporting revenues of $5.07 billion, up 41.5% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates. It reported 156.7 million daily active users, up 43.8% 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 34.5% year on year to $5.28 billion, slowing from the 46% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $10.60 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 3 upward revisions over the last 30 days (we track 10 analysts). MercadoLibre has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 7.2% on average.
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 163%, beating analysts’ expectations by 3%, and Shutterstock reported revenues up 7.4%, topping estimates by 4.1%. Shutterstock’s stock price was unchanged following the results.
Read our full analysis of EverQuote’s results here and Shutterstock’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 6.3% on average over the last month. MercadoLibre is up 6.5% during the same time and is heading into earnings with an average analyst price target of $2,310 (compared to the current share price of $2,090).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.