MercadoLibre bounces on strong results; Shares rise post-market
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MercadoLibre (NASDAQ:MELI) rose 5% post-market on strong earnings.
Revenue of $3.4B surpassed the $3.27B average analyst estimate while EPS of $5.16 compared to the expected $4.10.
The ecommerce retailer announced $10.5B in Gross Merchandise Volume, up 47.2% year-over-year on an FX neutral basis. Income from operations totaled $558M with a 16.3% margin.
âThe strong financial performance has been broad-based across geographies, with Brazil and Mexico making major contributions to the quarterâs profit growth, and further diversifying our profit base,â the company said in a statement.
Brazil and Mexico stood out as the markets with the fastest profit growth with solid operational KPIs, strong monetization and cost efficiency, MELI said.
âWe are seeing solid results from the cohorts of Mercado Pago credit cards that were issued in recent months in Brazil,â the company said. âOur other credit products in Brazil delivered healthy levels of profitability and delinquency, still driven by a continued cautious approach to originations.â
âWe have seen improvements in perceptions of Mercado Pago as a âone-stop shopâ for financial services, although we still have ample opportunity to improve brand consideration in this service sector.â
MELI is up 41% so far this year and down 2% over the past five days.
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