The 10-second takeaway
For the quarter ended March 31 (Q1), Mercadolibre beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped.
Margins dropped across the board.
Mercadolibre reported revenue of $102.7 million. The eight analysts polled by S&P Capital IQ hoped for revenue of $97.4 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $83.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.53. The seven earnings estimates compiled by S&P Capital IQ predicted $0.54 per share. Non-GAAP EPS of $0.53 for Q1 were 18% higher than the prior-year quarter's $0.45 per share. GAAP EPS of $0.40 for Q1 were 11% lower than the prior-year quarter's $0.45 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 72.1%, 270 basis points worse than the prior-year quarter. Operating margin was 27.8%, 200 basis points worse than the prior-year quarter. Net margin was 17.0%, 640 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $104.9 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $453.5 million. The average EPS estimate is $2.73.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,085 members out of 1,155 rating the stock outperform, and 70 members rating it underperform. Among 276 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 262 give Mercadolibre a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercadolibre is hold, with an average price target of $101.00.
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