Home Uncategorized MercadoLibre (MELI) to Report Q3 Earnings: What’s in Store?

MercadoLibre (MELI) to Report Q3 Earnings: What’s in Store?

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MercadoLibre, Inc. MELI is set to report third quarter 2022 results on November 3.

For the third quarter, the Zacks Consensus Estimate for sales is pegged at $2.69 billion, indicating growth of 44.8% compared to the reported quarter in the prior year.

The consensus estimate for earnings is set at $2.31 per share, which would indicate growth of 20.3% compared to the reported quarter last year. The estimate has been revised downward by 4.1% over the past 30 days.

MercadoLibre, Inc. Price and earnings per share surprise

Price Eps Surprise MercadoLibre, Inc | Quote from MercadoLibre, Inc

Factors to consider

MercadoLibre’s efforts to support its e-commerce business by promoting branding and loyalty are expected to grow its unique customer base in the third quarter.

Improved delivery services are expected to help MELI provide its customers with an improved shopping experience in the reporting quarter. This likely contributed to the increase in shipments through MercadoEnvios in the quarter under review.

Growing initiatives to strengthen the fintech business are expected to boost total payment volumes in the reporting quarter. In the quarter to be reported, MELI is expected to benefit from the strengthening of online payment and online wallet merchant services.

The expansion of MELI’s offerings from online to offline is likely to be reflected in the following results.

MercadoLibre’s strong momentum in market and non-market businesses is expected to be reflected in its third-quarter results.

Heavy investment in MercadoLibre’s logistics business is expected to have boosted the delivery system’s performance in the reported quarter. In addition, the expansion of the managed logistics network is expected to impact the business results in the third quarter.

However, rising managed network storage costs and costs associated with migrating infrastructure to public clouds likely impacted MELI’s profitability in the quarter under review.

Rising interest accruals on convertible bonds are expected to be a major concern, along with headwinds from currency fluctuations.

The effects of increased competitive pressure from e-commerce giants are expected to be reflected in third quarter results.

What our model says

Our tested model does not allow us to unambiguously predict MercadoLibre’s earnings this time. A combination of positive Profit 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 point here, as shown below. You can find the best stocks to buy or sell before they are announced in our ESP income filter.

MercadoLibre has an Earnings ESP of -3.68% and a Zacks Rank #3 (Hold).

Actions to consider

Here are some stocks to watch out for, as our model suggests they have the right mix of elements to win on earnings this season.

Baidu BIDU has an Earnings ESP of +0.82% and a Zacks Rank #2 currently. You see a complete list of today’s Zacks #1 Rank stocks here.

Baidu plans to report third quarter 2022 results on November 16. The Zacks Consensus Estimate for BIDU’s earnings per share is set at $2.44, which would indicate a year-over-year increase of 7.02%.

Trade department TTD currently has an Earnings ESP of +2.13% and a Zacks Rank of 2.

The Trade Desk is scheduled to report third quarter 2022 results on November 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, which would indicate a 33.3% increase from the reported quarter in the prior year.

Tencent Music Entertainment Group TME currently has an Earnings ESP of +4.76% and a Zacks Rank of 2.

Tencent Music is scheduled to report its Q3 2022 results on November 15. The Zacks Consensus Estimate for TME’s earnings is set at 11 cents per share, indicating an increase of 22.2% compared to the reported quarter in the prior-year period.

Stay tuned for future earnings announcements with help Zacks Earnings Calendar.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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