MercadoLibre (MELI) Q2 Earnings Report Preview: What To Look For

Latin American e-commerce and fintech company MercadoLibre (NASDAQ:MELI) will be reporting results this Monday afternoon. Here’s what to expect.

MercadoLibre beat analysts’ revenue expectations by 8.1% last quarter, reporting revenues of $5.94 billion, up 37% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and impressive growth in its users. It reported 66.6 million daily active users, up 24.5% 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 28.9% year on year to $6.54 billion, slowing from the 41.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $11.75 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 3 downward revisions over the last 30 days (we track 7 analysts). MercadoLibre has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 7.9% on average.

Looking at MercadoLibre’s peers in the online marketplace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Shutterstock delivered year-on-year revenue growth of 21.3%, beating analysts’ expectations by 7.5%, and eBay reported revenues up 6.1%, topping estimates by 3.1%. Shutterstock’s stock price was unchanged after the resultswhile eBay was up 18.5%.

Read our full analysis of Shutterstock’s results here and eBay’s results here.

Investors in the online marketplace segment have had steady hands going into earnings, with share prices flat over the last month. MercadoLibre is down 4.6% during the same time and is heading into earnings with an average analyst price target of $2,856 (compared to the current share price of $2,385).

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