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Shares of MercadoLibre (NASDAQ:MELI) are trading over 20% higher today after the Latin American e-commerce company reported excellent results for the third quarter following Thursday's closing bell.
Why it's happening
MercadoLibre's third-quarter revenue came in 20% higher than the year-ago quarter at $147.9 million, and its earnings of $0.76 per share were 15% higher than last year's $0.66 result. Both top and bottom lines blew past Wall Street's consensus, which had called for just $131 million in revenue and $0.65 in EPS.
Currency fluctuations complicated MercadoLibre's final results, as the company noted a 79% year-over-year improvement in gross merchandise volume in local currencies, which resulted in 89% year-over-year growth in revenue in local currencies. Venezuela has been in full-on hyperinflationary mode lately, as its year-over-year growth rate leapt from 92% a year ago to 220% in the third quarter based on stable exchange rates. However, MercadoLibre's item sales were up only 22% year-over-year, in line with the company's dollar-denominated top-line results.