Yahoo Finance MercadoLibre (MELI) Q1 Earnings: What To Expect
Latin American e-commerce and fintech company MercadoLibre (NASDAQ:MELI) will be reporting earnings tomorrow after market close. Here's what you need to know.
MercadoLibre beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $4.26 billion, up 41.9% year on year. It was a very strong quarter for the company, with impressive growth in its users and exceptional revenue growth. It reported 145 million daily active users, up 49.5% year on year.
Is MercadoLibre a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting MercadoLibre's revenue to grow 27.3% year on year to $3.87 billion, slowing from the 35.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.84 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MercadoLibre has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 4.1% on average.
Looking at MercadoLibre's peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Teladoc delivered year-on-year revenue growth of 2.7%, beating analysts' expectations by 1.4%, and Snap reported revenues up 20.9%, topping estimates by 6.6%. Teladoc traded down 2.4% following the results while Snap was up 27.5%.
Read our full analysis of Teladoc's results here and Snap's results here.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share prices down 4.4% on average over the last month. MercadoLibre is down 3.7% during the same time and is heading into earnings with an average analyst price target of $1,906.3 (compared to the current share price of $1,457).
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