MercadoLibre (NASDAQ:MELI) stock gained sharply in Wednesday’s extended trading after posting stronger than expected second quarter results.
The Argentine eCommerce giant posted $2.43 in earnings per share for the quarter alongside a 52.4% jump in revenue from the previous year to $2.59B. Those figures bested the analyst consensus by $0.79 and $80M, respectively. Of particular note was a 510 basis point improvement in gross margins from the prior year, improving to 49.4%. Operating margin remained stable.
Sales for the quarter notched a record as the company reached 40.8M unique buyers in the second quarter, setting a record in its own right. Growth in the Mexican market was specifically highlighted as a key contributor to the strong numbers.
“We delivered record results during the second quarter by focusing on execution, managing cash closely and continuing to invest in strategic initiatives that build our competitive advantage over time,” a letter to shareholders accompanying the results read. “Our ecosystem is powerful, even during challenging times, delivering improvements across our different geographies and business units.”
Shares rose 10.68% after the report, extending a 6.36% gain on Wednesday heading into the print.