MercadoLibre (MELI) Q2 Earnings Miss Estimates

Core Insights - MercadoLibre reported quarterly earnings of $10.31 per share, missing the Zacks Consensus Estimate of $12.01 per share, and down from $10.48 per share a year ago [1] - The earnings surprise was -14.15%, while the previous quarter saw a positive surprise of +26.99% [2] - The company posted revenues of $6.79 billion for the quarter, exceeding the Zacks Consensus Estimate by 4.10% and up from $5.07 billion year-over-year [3] Earnings Performance - The earnings report indicates that MercadoLibre has surpassed consensus EPS estimates two times over the last four quarters [2] - The company has consistently topped consensus revenue estimates, achieving this four times in the last four quarters [3] Stock Performance - MercadoLibre shares have increased approximately 39.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 6.1% [4] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $11.85 on revenues of $6.96 billion, and for the current fiscal year, it is $47.75 on revenues of $27.31 billion [8] - The estimate revisions trend prior to the earnings release was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Internet - Commerce industry, to which MercadoLibre belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [9]