What happened

Even as the market began the day lower on Thursday, shares of MercadoLibre (MELI 1.09%) charged sharply higher, gaining as much as 21.8%. As of 10:34 a.m. ET, the stock was still up 15.9%.

The catalyst that sent online retail and fintech specialist higher was its quarterly financial report, which was much better than expected.

So what

For the second quarter, MercadoLibre generated record revenue of $2.6 billion, up an impressive 57% year over year in local currencies. The results were fueled by e-commerce revenue that grew 23% and fintech revenue that surged 107%. The company also generated record operating income of $250 million, up 51%, resulting in quarterly net income of $123 million. This resulted in earnings per share (EPS) of $2.43, which soared 77%. 

To put those numbers in context, analysts' consensus estimates were calling for revenue of $2.5 billion and EPS of $1.96, so MercadoLibre sailed easily past expectations. 

The company continued to deliver robust growth across its ecosystem of products and services. Gross merchandise volume (the total value of products sold on its e-commerce platform) was $8.6 billion, up 26% year over year, fueled by a record 40.8 million unique buyers. Total payment volume (TPV) of $30.2 billion climbed 84%, driven higher by off-platform TPV that surged 135%, now representing 70% of total TPV. The company processed 1.1 billion total payment transactions, an increase of 73%. 

Now what

MercadoLibre doesn't provide quarterly guidance, preferring to maintain its long-term focus. Yet even as other digital retailers have struggled, MercadoLibre continues to put up impressive statistics. On the earnings conference call, the company noted it had achieved record results, extending last year's pandemic-fueled growth streak.

The stock has been dragged lower by the bear market, with shares currently down roughly 47% off last year's highs and it's currently selling for just five times forward sales, near a six-year low. However, given its blockbuster performance and historically low valuation, MercadoLibre stock is an unqualified buy.