MELI Earnings Prediction
The chart below shows how MELI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MELI sees a -1.76% change in stock price 10 days leading up to the earnings, and a +5.72% change 10 days following the report. On the earnings day itself, the stock moves by +0.67%. This data can give you a slight idea of what to expect for the next quarter's release.
MELI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.31B
41.28%
4.71%
Gross Margin
45.91%
-13.48%
-1.52%
Operating Margin
10.49%
-42.43%
-26.69%
Net Margin
7.47%
-21.78%
-28.65%
EPS
7.83
9.51%
-25.21%
No Data Available
MELI Earnings Analysis
Mercado Libre, Inc Corporation (MELI.O) Earnings Conference Call
Positive
GMV Growth in Key Markets: Mercado Libre reported a GMV growth of 34% year-on-year in Brazil and 27% in Mexico, indicating strong performance in these key markets.
Record Sales Growth: In Argentina, items sold grew at 16%, surpassing 60 million items sold on the platform, marking the highest volume ever.
Record New Buyer Growth: The company added a record of almost 7 million new buyers to its platform, exceeding the number seen during the peak of the pandemic.
EBIT and Profitability Margin: EBIT reached $557 million with a 10.5% margin, showcasing strong operational efficiency and profitability.
Net Income Increase: Net income rose by 11% compared to last year, reaching $397 million in the quarter, reflecting solid financial health.
Negative
Net Income Increase: Net income rose by 11% compared to last year, reaching $397 million in the quarter, with lower EBIT partially offset by a reduction in our FX losses.
EBIT Margin Compression: Our EBIT was $557 million with a 10.5% margin, indicating a compression in margins from last year due to strategic initiatives.
G&A Expense Increase: G&A expenses rose by 1.1 percentage points year-on-year, with 0.8 percentage points attributed to a non-recurring expense related to customer refunds for prior periods.
E-commerce Growth Potential: The penetration of e-commerce in Latin America continues to be relatively low, with only 15% of commerce being done online, indicating significant room for growth.
E-commerce Penetration Risks: Despite strong performance, the penetration of e-commerce remains low compared to other more developed regions, highlighting a potential risk in market expansion.
MELI FAQs
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MELI Earning Call Sentiment
MercadoLibre, Inc. (MELI) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
MELI.O
0.28%Positive
The earnings call summary indicates strong financial performance with 35% revenue growth and a 10.5% EBIT margin, despite FX headwinds. The company shows robust GMV and credit card TPV growth, alongside strategic investments in technology and fulfillment centers. Although there are competitive pressures and regulatory challenges, the optimistic guidance and focus on long-term growth outweigh these concerns. The Q&A session reinforced confidence in credit risk management and fulfillment capacity, with no significant margin pressure expected. Overall, the sentiment is positive, suggesting a likely stock price increase of 2% to 8%.