MercadoLibre stock leaps on bottom line beat, optimistic outlook
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MercadoLibre (NASDAQ:MELI) shares moved higher after hours after the Latin American e-commerce company notched stronger than expected profits alongside rapid sales acceleration.

For the third quarter, the company notched $2.56 in earnings per share, $0.24 above expectations while a 44.6% jump in revenue from 2021 came essentially in-line with estimates. The company also added 9M users in the quarter while Gross Merchandise Volume rose 31.5% year-over-year to $8.6B.

The Uruguay-based company touted growth not only in its commerce business, but its fintech segment while noting growth across geographies. Brazil, in particular, was cited as a nation in which MercadoLibre is growing faster than it had previously expected with apparel and consumer electronics sales rising most notably.

Management remained optimistic that resilient results will continue into the year-end, with a continued push for profits.

âAfter a successful third quarter that delivered strong growth and profitability, our attention is now focused on executing well in the fourth quarter, which brings Black Friday, the FIFA World Cup and Christmas back onto the retail calendar,â a letter to shareholders read. âWe remain as optimistic as ever about the fundamentals of our business: we have strengthened our leadership position in Commerce, our Fintech business continues to gain momentum, our profitability is solid, we have a strong balance sheet and we still see more opportunities to enhance the experience and synergies of our ecosystem.â
Shares of MercadoLibre (MELI) rose 6.24%
shortly after the report was released.