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MercadoLibre, Inc. (MELI - Free Report) is set to report fourth-quarter 2021 results on Feb 22.

For the fourth quarter, the Zacks Consensus Estimate for sales is pegged at $2 billion, indicating growth of 50.5% from the prior-year quarter’s reported figure.

The consensus mark for fourth-quarter earnings is pegged at 89 cents per share, which has been unchanged over the past 30 days. Notably, the company reported a loss of $1.02 in the year-ago quarter.

Factors to Consider

MercadoLibre’s strength across the marketplace and non-marketplace businesses is expected to get reflected in the fourth-quarter results.

The company’s growing initiatives toward strengthening the fintech business are expected to have contributed well to its upcoming results.

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The increasing adoption of MercadoPago on the back of the well-performing merchant services and mobile wallet businesses is expected to have driven the company’s total payment volume in the quarter to be reported.

MercadoLibre’s strengthening key offerings, especially online-to-offline offerings, are expected to have consistently aided the top line in the to-be-reported quarter.

Robust mobile-point-of-sale services are anticipated to have bolstered transactions per unique active device in the soon-to-be-reported quarter.

Strong wallet services are anticipated to have boosted the company’s in-store QR payment volume in the fourth quarter.

Apart from this, MercadoLibre’s efforts to bolster the e-commerce business by promoting branding and loyalty are likely to have driven growth in its unique buyer base in the fourth quarter amid the pandemic.

Strengthening shipping services are expected to have helped the company deliver an enhanced shopping experience to customers in the quarter to be reported. It is likely to have contributed to shipment growth via MercadoEnvios in the quarter under review.

Rising investment by the company in its logistics services is anticipated to have supported the performance of its delivery system in the quarter to be reported.

However, increasing warehousing costs of managed networks and expenses related to infrastructure transition on public clouds are likely to have impacted its profitability in the quarter under review.

Mounting interest accrual on convertible bonds and headwinds related to foreign exchange fluctuations are anticipated to have been major concerns.