"MercadoLibre (NASDAQ: MELI) will report third-quarter results after the bell Tuesday. Last quarter, MELI posted revenue of $6.79 billion, up 30% year-on-year, but missed EPS forecasts as normalized earnings came in at $10.31 versus consensus of $11.75, a 12% downside surprise. Despite the margin pressure from free-shipping and marketing campaigns, management reiterated confidence that these initiatives will accelerate user engagement and long-term monetization."
"1. Brazil's Free-Shipping Strategy and GMV ElasticityThe June shipping threshold cut from BRL 79 to BRL 19 boosted item growth but pressured near-term margins. Investors will focus on whether rising engagement offsets those costs through higher order frequency and conversion. 2. Fintech Scale and Credit QualityMercado Pago's active users rose to 68 million with assets under management more than doubling year-on-year. The credit portfolio hit $9.3 billion, up 91%, while NPLs under 90 days fell below 7%."
MercadoLibre will report third-quarter results after the close with expectations for double-digit top-line growth led by Brazil and Mexico. Last quarter revenue reached $6.79 billion, up 30% year-over-year, while normalized EPS missed consensus at $10.31 versus $11.75. Management maintained that free-shipping and marketing campaigns, despite pressuring near-term margins, will accelerate user engagement and long-term monetization. CFO Martin de los Santos noted record operating income of $825 million amid large-scale Mercado Pago campaigns and lower shipping thresholds. Mercado Pago active users rose to 68 million, AUM more than doubled, and the credit portfolio grew to $9.3 billion with NPLs under 90 days below 7%.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]