Mercadolibre Q3 Profit Misses Estimates - Update

(RTTNews) - Latin American e-commerce technology company Mercadolibre, Inc. (MELI) Tuesday reported higher profit for the third quarter that missed estimates. The stock fell over 7 percent in the extended trade.

Net income increased to $29.15 million or $0.66 per share from $26.07 million or $0.59 per share in the same period last year.

On average, seven analysts polled by Thomson Reuters expected the company to earn $0.73 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues increased 26.5 percent to $123.1 million from $97.27 million last year. Analysts expected revenues of $123.70 million

Brazil generated $52.26 million in the quarter, up 13 percent from last year, while revenue from Argentina climbed 37 percent to $33.14 million.

Total payments volume increased 34 percent to $641.6 million and gross merchandise volume improved 31 percent to $1.9 billion.

Marcos Galperin, CEO, said, "With topline growth accelerating for the third consecutive quarter in local currencies, the MercadoLibre ecosystem is clearly benefiting from our recent pace of innovation, as we continue to expand our product selection across a wider range of devices, adding key functionalities along the way.''

Galperin added that led by Brazil, value-adding services are driving strong marketplace growth across the board, optimally positioning the firm for the upcoming holiday shopping season.

MELI, which closed down 1.5 percent at $133.80 on Tuesday, declined 7.3 percent in the extended trade at $124.