What's in the Cards for MercadoLibre's (MELI) Q3 Earnings?

Zacks Investment Research  | Nov 01, 2021 04:06AM ET

Strengthening shipping services are expected to have helped the company deliver an enhanced shopping experience to customers in the quarter to be reported. It is likely to have contributed to shipment growth via MercadoEnvios in the quarter under review.

Strong investments in MercadoLibre’s logistics business are expected to have favored the delivery system’s performance in the to-be-reported quarter. Further, expanding managed logistics network is anticipated to have benefited the third-quarter performance of the business.

The company’s expanding online-to-offline offerings are likely to get reflected in the to-be-reported quarter’s results.

Its growing initiatives toward strengthening the fintech business are expected to have driven the total payment volumes in the to-be-reported quarter. Strength across online payment merchant service and online wallet is anticipated to have benefited the company in the quarter under review.

MercadoLibre’s solid momentum across the marketplace and non-marketplace businesses is expected to get reflected in third-quarter results.

However, increasing warehousing costs of managed network and expenses related to infrastructure transition on public clouds are likely to have impacted the company’s profitability in the quarter under review.

Mounting interest accrual on convertible bonds along with headwinds related to foreign exchange fluctuations is anticipated to have been major concerns.

The impacts of rising competitive pressure from e-commerce giants are expected to get reflected in the third-quarter results.

Our proven model doesn’t conclusively predict an earnings beat for MercadoLibre this time around. The combination of a positive the complete list of today’s Zacks #1 Rank stocks here .

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Written By: Zacks Investment Research