MercadoLibre Shines After Beating Wall Street's Expectations for Q1

MercadoLibre (NASDAQ: MELI  ) reported fiscal 2014 first-quarter earnings results after the market closed today that trounced Wall Street's estimates. For the period ended March 31, MercadoLibre generated a profit of $30.3 million, or $0.69 per share -- more than a 73% increase over the same period a year ago. That crushed analyst expectations for earnings per share of just $0.57 in the quarter.

Meanwhile, MercadoLibre's revenue climbed 12.3%, to $115.4 million, in the first-quarter, up from $102.7 million in the year-ago period. For comparison, the Street was looking for revenue of $109.4 million. The company's chief executive Marcos Galperin said, "Solid first quarter results showed progress in key initiatives such as payments, mobile and customer experience, encouraging us to keep innovating, executing and seizing the huge potential of our region's e-commerce."

The Latin American e-commerce giant added new merchandise to its product mix in the quarter, as gross merchandise volume grew to $1,797.3 million -- up 15% year over year. Payment transactions were another bright spot in the quarter, increasing more than 36%, with MercadoPago processing as much as $9.2 million payments in the period. Overall, MercadoLibre said its strong performance in the quarter was, in part, driven by growth in payments, as well as improved mobile penetration. As of the end of March, MercadoLibre's mobile app had been downloaded more than 10 million times.

Shares of MercadoLibre are down 21% year to date.

Read/Post Comments (1) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 08, 2014, at 5:20 PM, Nemomax wrote:

    last quarter earning report beat estimate too but the price kept falling after an early popped. I hope this doesn't has the same trend tomorrow.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2950174, ~/Articles/ArticleHandler.aspx, 9/1/2015 12:24:40 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Tamara Rutter

I've been an analytical writer for The Motley Fool since 2011. I cover the sectors of Consumer Goods, Technology, and Industrials. Connect with me on Twitter using the handle, @TamaraRutter -- I'd love to hear from you!

Today's Market

updated Moments ago Sponsored by:
DOW 16,175.70 -352.33 -2.13%
S&P 500 1,930.73 -41.45 -2.10%
NASD 4,691.16 -85.35 -1.79%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 12:08 PM
MELI $107.50 Down -2.55 -2.32%
MercadoLibre CAPS Rating: ****