Shares of MercadoLibre (NASDAQ: MELI) gained in pre-market trading on Friday after the Argentine company that operates online marketplaces delivered an earnings beat both on the top line and bottom line. The company swung to a profit in the calendar fourth quarter with earnings per share of $3.25 versus a loss of $0.92 in the same period last year and beating analysts’ consensus estimate of $2.42.
Sales increased by 40.8% year-over-year, to $3 billion and surpassing analysts’ expectations of $2.76 billion.
The company’s total payment volume went up by 80% year-over-year on a currency-neutral basis to $36 billion while gross merchandise volume, increased 34.7% year-over-year to $9.6 billion on a currency-neutral basis.
Overall, Wall Street analysts are bullish about MELI stock with a Strong Buy consensus rating based on a unanimous four Buys.