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Mercadolibre Shares Rally as Company Posts Yet Another Strong Quarterly Results (MELI)

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Shares of Mercadolibre Inc. (NASDAQ: MELI) rallied about 10.30% in aftermarket hours on Thursday after the e-commerce company, which operates in Latin America, handed stronger-than-expected fiscal second quarter results.

In addition to providing merchandising listings to businesses and individuals, the e-commerce platform also offers online payment services. The Company has been consistently posting double digit percentage growth both in revenue and earnings for the last eight straight quarters.

For the fiscal second quarter, Mercadolibre reported net income of $30 million or 67 cents a share compared to a profit of $25.4 million or 57 cents a share, which implies a growth of 18%.

Revenue soared 38% to $112.2 million as the company sold more products through its e-commerce platform eve as users increased.

Analysts polled by FactSet had expected earnings of 62 cents a share on revenue of $108 million.

The Company said that registered users’ base expanded by 23% from the same period of last year to 90.2 million. The number of items sold rose 27% to 20.1 million while gross merchandise volume jumped 33% to $1.73 billion.

Gross margin shrank to 72.3% from 73.1% while operating expenses rose 38% to $45.7 million.








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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