Why MercadoLibre Shares Skyrocketed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of MercadoLibre (NASDAQ: MELI  ) skyrocketed by upwards of 12% today after the Latin American e-commerce company reported earnings.

So what: Revenue for the first quarter came in at $102.7 million, easily beating the Street's $97.4 million forecast. That made up for the fact that adjusted earnings per share of $0.53 was slightly below consensus, which called for $0.54 per share. CEO Marcos Galperin said volume has been accelerating in both the marketplace and payments businesses.

Now what: Gross merchandise volume was up 30% to $1.6 billion, while total payments volume soared 62% to $532.1 million. Both of those figures are in local currencies. The number of items sold was up 21% to 18.1 million, with the number of payment transactions increasing 38% to 6.7 million. MercadoLibre generated $24 million in free cash flow during the quarter.

Interested in more info on MercadoLibre? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2414930, ~/Articles/ArticleHandler.aspx, 4/16/2014 1:42:32 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement