Mercadolibre Earnings: Here’s Why the Stock is Rising Now

Mercadolibre, Inc. (NASDAQ:MELI) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 9.6%.

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Mercadolibre, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.78% to $0.53 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Rose 22.64% to $102.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Mercadolibre, Inc. reported adjusted EPS income of $0.53 per share. By that measure, the company missed the mean analyst estimate of $0.54. It beat the average revenue estimate of $97.44 million.

Quoting Management: Marcos Galperin, President and Chief Executive Officer of MercadoLibre, Inc., commented, “MercadoLibre was off to a good start in 2013. We saw volume accelerate across both our core marketplace and payments businesses, as we are meeting the growing demands of a quickly expanding base of users. Our ongoing initiatives are evidently raising the bar with respect to the ease, comfort and quality of the experience shoppers can expect as they make the transition to online shopping. We intend to keep driving this dynamic forward as the year advances.”

Key Stats (on next page)…

Revenue decreased 1.01% from $103.75 million in the previous quarter. EPS decreased 23.19% from $0.69 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.66 to a profit $0.62. For the current year, the average estimate has moved down from a profit of $2.75 to a profit of $2.71 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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