MercadoLibre is up big today after reporting earnings, beating on both the top and bottom lines. Nicknamed "The eBay of Latin America," the company has shown four straight years of more than 30% growth per year, but has had a very rough go of things during the past several months.
In this video from Friday's edition of Investor Beat, host Chris Hill and Motley Fool Million Dollar Portfolio analyst Ron Gross take a look at MercadoLibre, and its success despite its geographical headwinds. They also look at the incredible growth of the stock that eBay doesn't have, and whether or not the company can maintain this pace.
Then, guidance has proven to be more important to the market than earnings for Deckers Outdoor today, as the company reported good Q4 results, but surprised everyone by forecasting a loss for the upcoming Q1. The company has put the blame for the coming loss on the cost of opening new stores and increased marketing, but the market reacted poorly to the news. Ron notes that the business is doing well, but despite today's pullback, he still sees it as pricey. He's also concerned because the company still relies heavily on the trendy UGG brand footwear. As a result, he isn't interested in buying Deckers today.
Pier 1 Imports has cut full-year guidance for the second time in as many months. Like many other retailers, it blames the exceptionally severe winter weather for the reduced foot traffic the company experienced this winter. Pier 1 was even forced to close some of its locations temporarily, which hurt the company's sales even further. Chris and Ron discuss Pier 1 and the trend of retailers citing the weather for this quarter's troubles. They also talk about why the market gives some companies a pass with this excuse, but why it didn't let Pier 1 off the hook this time.
Finally, Ron takes a look at Costco. The company reports earnings next week, and Ron tells investors that this is one of his personal favorite stocks, but that the Million Dollar Portfolio service has had the stock as a "hold" for a while now after it ran up above $115. Ron will be watching the earnings closely, as he would love to have a reason to upgrade Costco back to a buy.
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Chris Hill owns shares of eBay. Ron Gross owns shares of Costco Wholesale. The Motley Fool recommends Costco Wholesale, eBay, and MercadoLibre. The Motley Fool owns shares of Costco Wholesale, eBay, and MercadoLibre. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.