MercadoLibre Earnings: Strength in Brazil and Mexico Offset Argentine Weakness; Shares Fairly Priced

Wide-moat MercadoLibre generated another solid quarter, with $4.33 billion in sales and $6.78 in diluted earnings per share, both topping FactSet consensus estimates by double-digit percentages. Argentina's pressure added a stout headwind, but our key takeaway is that the firm continues to cement its position as the dominant e-commerce player in Latin America. The firm is making significant progress toward achieving financial pre-eminence with Mercado Pago users and should continue to generate outsize growth for the foreseeable future. We expect to raise our $1,400 fair value estimate by a low-single-digit percentage after digesting results, broadly consistent with time value.