The 10-second takeaway
For the quarter ended March 31 (Q1), Mercadolibre beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped.
Margins dropped across the board.
Mercadolibre reported revenue of $102.7 million. The eight analysts polled by S&P Capital IQ hoped for revenue of $97.4 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $83.7 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 $0.53. The seven earnings estimates compiled by S&P Capital IQ predicted $0.54 per share. Non-GAAP EPS of $0.53 for Q1 were 18% higher than the prior-year quarter's $0.45 per share. GAAP EPS of $0.40 for Q1 were 11% lower than the prior-year quarter's $0.45 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 72.1%, 270 basis points worse than the prior-year quarter. Operating margin was 27.8%, 200 basis points worse than the prior-year quarter. Net margin was 17.0%, 640 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $104.9 million. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $453.5 million. The average EPS estimate is $2.73.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,085 members out of 1,155 rating the stock outperform, and 70 members rating it underperform. Among 276 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 262 give Mercadolibre a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercadolibre is hold, with an average price target of $101.00.
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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.