MercadoLibre Earnings: Strong, Profitable Quarterly Growth Suggests That the Best Is yet To Come

Wide-moat MercadoLibre's robust comps are becoming its own toughest competition; the Latin American e-commerce stalwart posted 43% foreign exchange-neutral growth in gross merchandise volume, 96% foreign exchange-neutral growth in total payment volume, and a healthy 11.2% operating margin during a fantastic first quarter. While the firm continues to fire on all cylinders, results clocked in pretty much in line with our expectations, as both $9.4 billion in GMV and $37 billion in TPV aligned with our own estimates. EPS of $3.97 arrived just shy of our $4.01 forecast, but we remain extremely impressed with management's ability to efficiently deploy capital across a sprawling suite of business segment and country combinations. As we digest results, we plan to raise our $1,200 fair value estimate by a low-single-digit percentage, consistent with time value. Shares look fairly priced.