MercadoLibre (MELI) to Report Q3 Earnings: What's in the Cards?
MercadoLibre, Inc. MELI is set to report third-quarter 2023 results on Nov 1.
For the third quarter, the Zacks Consensus Estimate for sales is pegged at $3.57 billion, indicating growth of 32.8% from the prior-year quarter’s reported figure.
The consensus mark for third-quarter earnings is pegged at $5.85 per share, suggesting a 128.5% jump from the year-ago quarter. The consensus estimate has been revised downward by 3 cents over the past 30 days.
The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 30.1%.
Let’s see how things are shaping up for this announcement.
MercadoLibre, Inc. Price and EPS Surprise
MercadoLibre, Inc. price-eps-surprise | MercadoLibre, Inc. Quote
Factors to Note
MercadoLibre’s strength across the marketplace and non-marketplace businesses is expected to get reflected in third-quarter results. The company’s growing initiatives toward strengthening the fintech business are expected to contribute well to its upcoming results. Our estimate for the Fintech operation’s third-quarter revenues is pegged at $1.52 billion, indicating a 24.2% increase from the year-ago quarter.
The increasing adoption of MercadoPago due to the well-performing merchant services and mobile wallet businesses is expected to have driven the company’s total payment volume in the quarter to be reported.
MercadoLibre’s strong key offerings, especially online-to-offline offerings, are expected to have consistently aided the top line in the to-be-reported quarter. Robust mobile-point-of-sale services are anticipated to have bolstered transactions per unique active device in the soon-to-be-reported quarter.
MercadoLibre’s efforts to bolster the e-commerce business by promoting branding and loyalty are likely to have driven growth in its unique buyer base in the third quarter. Solid shipping services are expected to have helped the company deliver an enhanced shopping experience to customers in the quarter to be reported. It is likely to have contributed to shipment growth via MercadoEnvios in the third quarter.
Rising investments by the company in its logistics services are anticipated to have supported the performance of its delivery system in the quarter to be reported. We forecast that the company’s Commerce business unit’s third-quarter revenues would have grown 30% year over year to $1.90 billion.
However, increasing warehousing costs for managed networks and expenses related to infrastructure transitions on public clouds are likely to have impacted MELI’s profitability in the quarter under review.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for MercadoLibre this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though MELI has an Earnings ESP of +3.17%, it carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, NVIDIA Corporation NVDA, Palantir Technologies PLTR and Synaptics SYNA have the right combination of elements to post an earnings beat in their upcoming releases.
NVIDIA sports a Zacks Rank #1 and has an Earnings ESP of +6.93%. The company is scheduled to report third-quarter fiscal 2023 results on Nov 21. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 9.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s third-quarter earnings is pegged at $3.34 per share, indicating a year-over-year increase of 475.9%. The consensus mark for revenues stands at $16.12 billion, suggesting a year-over-year surge of 171.7%.
Palantir carries a Zacks Rank #2 and has an Earnings ESP of +4.35%. The company is scheduled to report third-quarter 2023 results on Nov 2. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, with the average surprise being 2.1%.
The Zacks Consensus Estimate for Palantir’s third-quarter earnings stands at 6 cents per share, indicating a year-over-year improvement of 500%. It is estimated to report revenues of $555 million, which suggests an increase of approximately 16.1% from the year-ago quarter.
Synaptics is slated to report first-quarter fiscal 2024 results on Nov 9. The company has a Zacks Rank #2 and an Earnings ESP of +3.54% at present. Synaptics’ earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 3.6%.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 38 cents per share, suggesting a decrease of 89.2% from the year-ago quarter’s earnings of $3.52. Synaptics’ quarterly revenues are estimated to decline 48.2% year over year to $232 million.
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
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