The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MercadoLibre met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins dropped across the board.
MercadoLibre reported revenue of $86.5 million. The seven analysts polled by S&P Capital IQ predicted sales of $87.3 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $62.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.47. The six earnings estimates compiled by S&P Capital IQ anticipated $0.51 per share on the same basis. GAAP EPS of $0.49 for Q4 were 36% higher than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 76.0%, 190 basis points worse than the prior-year quarter. Operating margin was 33.5%, 10 basis points worse than the prior-year quarter. Net margin was 25.0%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $83.3 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $397.1 million. The average EPS estimate is $2.23.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 914 members out of 989 rating the stock outperform, and 75 members rating it underperform. Among 281 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 266 give MercadoLibre a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MercadoLibre is outperform, with an average price target of $95.56.
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