There are several levers CVS pulled this quarter, and thanks to the help of some acquired pharmacies, the stock in enjoying a little pop after earnings.
With MercadoLibre, growth numbers look good, particularly if you focus on non-currency metrics like registered users, items sold, and transactions on MercadoPago.
A transcript follows the video.
This podcast was recorded on May 6, 2016.
Chris Hill: First-quarter profit and revenue for CVS Health coming in a little bit higher than expected, and the stock moving a little bit higher, too, Ron.
Ron Gross: The company is doing well, benefiting from all those Target pharmacies they took on, and the acquisition of Omnicare. Same-store sales are up 4%. Margins took a hit, what we call reimbursement pressure continuing to weigh, some of their product mix hurting margins. So, adjusted EPS was only up 4%, but pretty good. Guidance a bit weak, but reiterated full-year. So I would say everything's on track, company continues to execute well.
Hill: MercadoLibre is the most popular e-commerce business in Latin America. First-quarter results were surprising, but in a good way, Matty.
Matt Argersinger: Surprising in a good way. It's tough to follow the top-line earnings results for this company, because the currencies they deal with in Latin America are so volatile against the U.S. dollar. Three metrics I really like to use -- if you look at registered users, those are up 20% to 152 million. They're by far the leader in e-commerce in the region. Items sold is kind of my proxy for revenue growth up 39% to 38 million units. Also, transactions on MercadoPago, which is their PayPal-like platform, up 86% to 27.5 million, which gives you an idea of the velocity of transactions across MercadoLibre's platform. I love this company. I think if you really want to play e-commerce in emerging markets, this is probably your best bet.