The 10-second takeaway
For the quarter ended June 30 (Q2), Mercadolibre met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.
Gross margins shrank, operating margins increased, net margins increased.
Mercadolibre tallied revenue of $88.8 million. The eight analysts polled by S&P Capital IQ predicted revenue of $88.0 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $69.4 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 $0.57. The seven earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS of $0.57 for Q2 were 68% higher than the prior-year quarter's $0.34 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 73.1%, 250 basis points worse than the prior-year quarter. Operating margin was 35.9%, 480 basis points better than the prior-year quarter. Net margin was 28.6%, 720 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $100.6 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $381.3 million. The average EPS estimate is $2.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,045 members rating the stock outperform, and 74 members rating it underperform. Among 263 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 246 give Mercadolibre a green thumbs-up, and 17 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 $97.38.
- Add Mercadolibre to My Watchlist.