Latin American e-commerce and fintech company MercadoLibre (NASDAQ:MELI) will be reporting earnings this Thursday after market hours. Here’s what to look for.
MercadoLibre beat analysts’ revenue expectations last quarter, reporting revenues of $8.76 billion, up 44.6% year on year. It was a strong quarter for the company, with impressive growth in its users and a decent beat of analysts’ revenue estimates. It reported 83 million daily active users, up 23.9% 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 40.9% year on year, improving from the 37% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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.
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 14.5%, beating analysts’ expectations by 5.7%, and Etsy reported revenues up 3.1%, topping estimates by 2.4%. EverQuote traded up 63.1% following the results while Etsy was also up 1.8%.
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 11.8% on average over the last month. MercadoLibre is up 6.7% during the same time and is heading into earnings with an average analyst price target of $2,440 (compared to the current share price of $1,825).
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