MercadoLibre (MELI) to Report Q3 Earnings: What's in Store?
MercadoLibre, Inc. MELI is set to report third-quarter 2022 results on Nov 3.
For the third quarter, the Zacks Consensus Estimate for sales is pegged at $2.69 billion, indicating growth of 44.8% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pegged at $2.31 per share, suggesting growth of 20.3% from the year-ago quarter’s reported figure. The estimate has been revised 4.1% downward over the past 30 days.
MercadoLibre, Inc. Price and EPS Surprise
MercadoLibre, Inc. price-eps-surprise | MercadoLibre, Inc. Quote
Factors to Note
MercadoLibre’s efforts to bolster the e-commerce business by promoting branding and loyalty are expected to have driven growth in its unique buyer base in the third quarter.
Strengthening shipping services are expected to have helped MELI deliver an enhanced shopping experience to its customers in the quarter to be reported. It is likely to have contributed to shipment growth via MercadoEnvios in the quarter under review.
Its growing initiatives toward strengthening the fintech business are expected to have driven the total payment volumes in the to-be-reported quarter. Strength across online payment merchant service and online wallet is anticipated to have benefited MELI in the quarter to be reported.
MELI’s expanding online-to-offline offerings are likely to get reflected in the upcoming results.
MercadoLibre’s solid momentum across the marketplace and non-marketplace businesses is expected to get reflected in third-quarter results.
Strong investments in MercadoLibre’s logistics business are expected to have favored the delivery system’s performance in the to-be-reported quarter. Further, expanding managed logistics network is anticipated to have benefited the third-quarter performance of the business.
However, increasing warehousing costs of managed networks and expenses related to infrastructure transition on public clouds are likely to have impacted MELI’s profitability in the quarter under review.
Mounting interest accrual on convertible bonds along with headwinds related to foreign exchange fluctuations is anticipated to have been a major concern.
The impacts of rising competitive pressure from e-commerce giants are expected to get reflected in the third-quarter results.
What Our Model Says
Our proven model doesn’t conclusively predict 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. But that’s not the case here, as elaborated below. 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 -3.68% and a Zacks Rank #3 (Hold).
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Baidu BIDU has an Earnings ESP of +0.82% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Baidu is set to report third-quarter 2022 results on Nov 16. The Zacks Consensus Estimate for BIDU’s earnings is pegged at $2.44 per share, suggesting an increase of 7.02% from the prior-year period’s reported figure.
The Trade Desk TTD has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group TME has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Baidu, Inc. (BIDU) : Free Stock Analysis Report
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
The Trade Desk (TTD) : Free Stock Analysis Report
Tencent Music Entertainment Group Sponsored ADR (TME) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
