The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Mercadolibre met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Gross margins contracted, operating margins grew, net margins grew.
Mercadolibre logged revenue of $103.8 million. The nine analysts polled by S&P Capital IQ predicted a top line of $105.3 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $86.5 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 $0.69. The seven earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. Non-GAAP EPS of $0.69 for Q4 were 47% higher than the prior-year quarter's $0.47 per share. GAAP EPS of $0.68 for Q4 were 42% higher than the prior-year quarter's $0.48 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%, 240 basis points worse than the prior-year quarter. Operating margin was 37.7%, 420 basis points better than the prior-year quarter. Net margin was 29.1%, 410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $99.8 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $457.1 million. The average EPS estimate is $2.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,087 members out of 1,160 rating the stock outperform, and 73 members rating it underperform. Among 273 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 260 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 $95.78.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends MercadoLibre. The Motley Fool owns shares of 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.