São Paulo – Deeds of Luisa Magazine (MGLU3) and go (VIIA3) The day was spent among the major hikes in Ibovespa Competitor Results Driven: Duty Free (MELI34). The e-commerce giant’s numbers slowed, but were rated “strong” by analysts and suggest the online retail situation is better than expected. Another detail is that the result was largely driven by sales in Brazil, a market that accounts for more than half of free market revenue.
Magazine Luiza’s shares closed 12.27% higher at R$12.42. By shares, it rose 10.79% to R$7.29, and the balance sheets of the two companies are due next week. FIA will announce the result next Wednesday (10) and Luiza magazine the next day (11). American (AMER3), which will also release its figures next week (the eleventh), also made a gain, albeit more modest, by 6.59% for AMER3 assets, at R$34.95, while lame 4 By 7.42% to 6.08 Brazilian Real.
With the gradual recovery of the economy and the reopening of physical stores, there have been doubts about whether internet sales will be able to sustain the breath they have given throughout the pandemic. Sales (GMV) of Mercado Livre in Latin America was $7.3 billion in the third quarter, an increase of nearly 30% over last year. Total revenue was $1.8 billion in the period. The company doesn’t tell how much each region has earned, but it claims that net dollar revenue in Brazil increased 57% year over year. In Rais, the number more than doubled, increasing by 112%.
The increase in revenue, along with greater control over expenses, resulted in Mercado Lever net income of $95.2 million, a volume six times greater than that reported in the previous year.
The company ended September with a base of 78.7 million unique users, which was a 3.4% increase in 12 months. The total volume of payments made by Mercado Pago grew by 59%, to $20.9 billion. Loans granted by the company amounted to more than one billion US dollars, which is three times larger than the previous year. The company also claims that the chip shortage has had some impact on Mercado Pago’s Payment Terminal (POS) sales, but it is seeking to normalize the situation by looking for more suppliers of equipment.
Itaú BBA saw positive Mercado Livre results. The overall sales data is in line with internal analysts and Ebitda’s earnings were a positive surprise. Thus, the bank says it sees scope for the company to further monetize its platform, which it sees as a catalyst for particularly good results for the third quarter of 2021.
Bradesco BBI assessed MercadoLibre’s results as strong, with decent growth across the business. The bank says key performance indicators (KPIs) are strong in the marketing sector, especially when it comes to logistics, allowing the company to maintain its leadership in key markets.
After the results, Morgan Stanley maintained its revenue forecast, but raised its estimate of Ebitda’s earnings in 2021 by 15% and by 9% for 2022. The GMV forecast was down 1%. Expectations for the total value of payments advanced by 5%. Target price is $2420, compared to Thursday’s Nasdaq price, R$1556.49, and valuation is overweight (Expected rise above market average).
“We are entering a fundamental maturation process in which the main objective is to retain customers and encourage them to engage in more revenue-generating transactions,” Andre Chavez, vice president of market strategy for corporate development and investor relations, told Reuters.
According to the CEO, as the focus of digital business companies moves to retain customers and make them transact profitably, the free market should have comparative advantages, given its efforts in recent quarters to expand its logistics structure. It will allow gains in a large scale and increase cost control.
Gustavo Cruz, strategist at RB Investimentos, highlighted that in addition to stronger-than-expected peer and competitor results, as was the case with retailer Arezzo (ARZZ3), who reported their numbers this week, is another notable factor.
Today was more favorable on the yield curve, which is currently declining. He noted that this would soften expectations of future sales by retailers, who use the term credit method.
On the results of other companies, Cruz noted that it certainly eases pressure on companies at a time when investors doubt the weakness of Black Friday and Christmas.
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