Latin American e-commerce giant MercadoLibre (MELI) saw its stock surge 8.29% in pre-market trading on Thursday, following the release of its impressive first-quarter 2025 financial results. The company significantly outperformed analysts' expectations, demonstrating robust growth across key metrics.

MercadoLibre reported a net profit of $494 million for the quarter ended in March, marking a 44% increase from the previous year and surpassing the $420.9 million forecasted by analysts. The company's total revenue reached $5.9 billion, up 37% year-on-year, also beating analysts' expectations of $5.51 billion. Earnings per share came in at $9.74, substantially exceeding the consensus estimate of $8.03.

The standout performance was particularly notable in Argentina, where sales grew 126% on a foreign-exchange neutral basis. This strong showing helped Argentina regain its position as MercadoLibre's second-largest market by revenue, overtaking Mexico. The company's Chief Financial Officer, Martin de los Santos, attributed this success to lower inflation and interest rates in Argentina, which drove greater sales and appetite for credit. Additionally, MercadoLibre's credit portfolio expanded by 75% year-on-year to $7.8 billion, further contributing to its strong financial results. The company's ability to capitalize on the growing e-commerce and fintech sectors in Latin America continues to impress investors, as reflected in the significant pre-market stock movement.