The 10-second takeaway
For the quarter ended March 31 (Q1), Mercadolibre met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins dropped, net margins grew.
Mercadolibre recorded revenue of $83.7 million. The seven analysts polled by S&P Capital IQ hoped for a top line of $84.6 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $61.5 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 $0.45. The six earnings estimates compiled by S&P Capital IQ anticipated $0.45 per share. GAAP EPS of $0.44 for Q1 were 38% higher than the prior-year quarter's $0.32 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 74.8%, 190 basis points worse than the prior-year quarter. Operating margin was 29.8%, 160 basis points worse than the prior-year quarter. Net margin was 23.4%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $90.3 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $398.5 million. The average EPS estimate is $2.26.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 976 members out of 1,053 rating the stock outperform, and 77 members rating it underperform. Among 261 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 242 give Mercadolibre a green thumbs-up, and 19 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 $103.25.
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