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What's in the Cards for MercadoLibre (MELI) in Q3 Earnings?
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MercadoLibre, Inc. (MELI - Free Report) is set to report third-quarter 2020 results on Nov 4.
For the third quarter, the Zacks Consensus Estimate for sales is pegged at $1.01 billion, indicating growth of 66.9% from the prior-year quarter’s reported figure.
Further, the consensus mark for earnings stands at 8 cents per share against the loss of 97 cents per share reported in the year-ago quarter.
In the last reported quarter, MercadoLibre delivered earnings of $1.11 per share, beating the Zacks Consensus Estimate of 10 cents. Further, the bottom line improved 258.1% from the year-ago quarter.
Moreover, revenues surged 61.1% on a year-over-year basis (123.4% on an FX neutral basis) to $878.4 million. Moreover, the figure surpassed the Zacks Consensus Estimate of $790.8 million.
MercadoLibre’s strength across marketplace and non-marketplace businesses is expected to get reflected in the third-quarter results.
Further, the company’s growing initiatives toward strengthening fintech business might have driven the total payment volumes (TPV) in the quarter under review. This, in turn, is expected to have contributed to itsthird-quarter performance.
MercadoLibre’s strengthening key offerings, especially online-to-offline offerings, are expected to have consistently aidedthe top line in the to-be-reported quarter.
Further, its growing initiatives toward fortifying its fintech business might have been major positives. Moreover, the increasing adoption of MercadoPago on the back of well-performing merchant services and mobile wallet business is expected to have driven the company’s total payment volume in the third quarter.
Robust mobile-point-of-sale (MPOS) services are anticipated to have bolstered transactions per unique active device in the third quarter.
Further, strong wallet services are anticipated to have boosted the company’s in-store QR payments volume during the third quarter. Additionally, a robust Mercado Pago might have contributed to the TPV in the to-be-reported quarter.
Furthermore, MercadoLibre’s robust free shipping program continues to aid in delivering a better shopping experience. Moreover, it is likely to have propelled the company’s shipment growth via MercadoEnvios, which is expected to get reflected in the upcoming quarterly results.
Moreover, rising investment by the company in its logistics services is likely to have supported the performance of its delivery system in the quarter under review.
What Our Model Says
Our proven model conclusively predicts an earnings beat for MercadoLibre this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MercadoLibre has an Earnings ESP of +269.05% and a Zacks Rank of 1, currently.
Other Stocks to Consider
Here are some other stocks worth considering as our proven model shows that thesetoo have the right combination of elements to beat on earnings this season.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank #2 at present.
Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +8.45% and a Zacks Rank #3 at present.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
What's in the Cards for MercadoLibre (MELI) in Q3 Earnings?
MercadoLibre, Inc. (MELI - Free Report) is set to report third-quarter 2020 results on Nov 4.
For the third quarter, the Zacks Consensus Estimate for sales is pegged at $1.01 billion, indicating growth of 66.9% from the prior-year quarter’s reported figure.
Further, the consensus mark for earnings stands at 8 cents per share against the loss of 97 cents per share reported in the year-ago quarter.
In the last reported quarter, MercadoLibre delivered earnings of $1.11 per share, beating the Zacks Consensus Estimate of 10 cents. Further, the bottom line improved 258.1% from the year-ago quarter.
Moreover, revenues surged 61.1% on a year-over-year basis (123.4% on an FX neutral basis) to $878.4 million. Moreover, the figure surpassed the Zacks Consensus Estimate of $790.8 million.
MercadoLibre, Inc. Price and EPS Surprise
MercadoLibre, Inc. price-eps-surprise | MercadoLibre, Inc. Quote
Factors to Consider
MercadoLibre’s strength across marketplace and non-marketplace businesses is expected to get reflected in the third-quarter results.
Further, the company’s growing initiatives toward strengthening fintech business might have driven the total payment volumes (TPV) in the quarter under review. This, in turn, is expected to have contributed to itsthird-quarter performance.
MercadoLibre’s strengthening key offerings, especially online-to-offline offerings, are expected to have consistently aidedthe top line in the to-be-reported quarter.
Further, its growing initiatives toward fortifying its fintech business might have been major positives. Moreover, the increasing adoption of MercadoPago on the back of well-performing merchant services and mobile wallet business is expected to have driven the company’s total payment volume in the third quarter.
Robust mobile-point-of-sale (MPOS) services are anticipated to have bolstered transactions per unique active device in the third quarter.
Further, strong wallet services are anticipated to have boosted the company’s in-store QR payments volume during the third quarter. Additionally, a robust Mercado Pago might have contributed to the TPV in the to-be-reported quarter.
Furthermore, MercadoLibre’s robust free shipping program continues to aid in delivering a better shopping experience. Moreover, it is likely to have propelled the company’s shipment growth via MercadoEnvios, which is expected to get reflected in the upcoming quarterly results.
Moreover, rising investment by the company in its logistics services is likely to have supported the performance of its delivery system in the quarter under review.
What Our Model Says
Our proven model conclusively predicts an earnings beat for MercadoLibre this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MercadoLibre has an Earnings ESP of +269.05% and a Zacks Rank of 1, currently.
Other Stocks to Consider
Here are some other stocks worth considering as our proven model shows that thesetoo have the right combination of elements to beat on earnings this season.
Advanced Energy Industry, Inc. (AEIS - Free Report) presently has an Earnings ESP of +1.03% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and a Zacks Rank #2 at present.
Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +8.45% and a Zacks Rank #3 at present.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>