The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Mercadolibre met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped.
Margins contracted across the board.
Mercadolibre chalked up revenue of $97.3 million. The nine analysts polled by S&P Capital IQ predicted a top line of $98.1 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $81.6 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 $0.59. The seven earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.59 for Q3 were 1.7% lower than the prior-year quarter's $0.60 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 73.6%, 180 basis points worse than the prior-year quarter. Operating margin was 34.7%, 200 basis points worse than the prior-year quarter. Net margin was 26.8%, 540 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $107.4 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $380.0 million. The average EPS estimate is $2.28.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,073 members out of 1,146 rating the stock outperform, and 73 members rating it underperform. Among 275 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 262 give Mercadolibre a green thumbs-up, and 13 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 $98.28.
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