MercadoLibre (MELI) earnings: expect 29% revenue growth

4:57 pm ET, 01 May 2019

MercadoLibre, Inc. (MELI) is announcing earnings on May 02 after the market closes. Wondering what revenue and earnings will look like?

What should you expect from the upcoming earnings?

Revenue for the next quarter is expected to be $413M, which implies 29% growth rate year-over-year.

Earnings per share are expected to come in at $-0.01. If this materializes, EPS will grow 97% year-over-year.

How did the stock do last month?

Over the last month, MercadoLibre, Inc. (MELI) returned -0.89%.

How is the stock valued?

MercadoLibre, Inc. (MELI) forward P/E ratio is 177.62, and it’s high compared to its industry peers’ P/E ratios.

What do analysts say about the stock?

MercadoLibre, Inc. (MELI) average analyst price target is -1.44% below its current price ($484.14).

For the latest price and information on MercadoLibre, Inc., please visit Finstead and ask for "MELI", "MELI analysis" or "MELI news".

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MercadoLibre, Inc. (MELI) Stock Guide

Updated at: 5:27 am ET, 18 Sep 2020

Before we start: if you're looking for MELI stock price, you can quickly find it out by visiting Finny and typing "MELI quote". If you're looking for a quick scoop on MELI stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "MELI". You'll get all this info in one place. Or you can just type "MELI news" to get the latest stock news.

Looking to buy or sell MercadoLibre, Inc. (MELI)? Interested in getting the full scoop on MELI, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this MELI stock guide, we'll address key questions about MELI, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are MELI earnings?
2. What is MELI stock forecast (i.e., prediction)?
3. MELI buy or sell? What is MELI Finny Score?
4. What are the reasons to buy MELI? Why should I buy MELI stock?
5. What are the reasons to sell MELI? Why should I sell MELI stock?
6. What are MELI key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are MELI earnings?

MELI trailing 12-month earnings per share (EPS) is -$3.40.

Analyst Predictions

2. What is MELI stock forecast (i.e., prediction)?

Based on MELI analyst price targets, MELI stock forecast is $1,170.95 (for a year from now). That means the average analyst price target for MELI stock is $1,170.95. The prediction is based on 15 analyst estimates.

The low price target for MELI is $300.00, while the high price target is $1,550.00.

MELI analyst rating is Buy.

Analysis

3. MELI buy or sell? What is MELI Finny Score?

#{finnyScore:50}Our quantitative analysis shows 6 reasons to buy and 6 reasons to sell MELI, resulting in Finny Score of 50.

4. What are the reasons to buy MELI? Why should I buy MELI stock?

Here are the reasons to buy MELI stock:

  • MercadoLibre is poised to benefit from increasing adoption of online and mobile commerce in Latin America. Internet penetration in the region remains relatively low at just over 60%, with almost half of all Internet users actively on MercadoLibre.
  • Network infrastructure, application development, and software engineer investments and payment settlement capabilities have distanced MercadoLibre from its competition.
  • MercadoLibre could garner takeover interest from global e-commerce companies due to its strong regional network effect.
  • MELI quarterly revenue growth was 61.10%, higher than the industry and sector average revenue growth (0.81% and 0.78%, respectively). See MELI revenue growth chart.
  • MELI profitability is improving. The YoY profit margin change was 0.99 percentage points. See MELI profitability chart.
  • MELI PEG ratio (P/E adjusted for growth) is 68.68, which is low compared to its industry peers’ PEG ratios. See MELI PEG chart.
  • MELI average analyst rating is Buy. See MELI analyst rating chart.
  • MELI average analyst price target ($1170.95) is above its current price ($980.15). See MELI price target chart.
  • MELI cash to debt ratio is 1.98, higher than the average industry (0.16) and sector (0.13) cash to debt ratio. See MELI cash to debt chart.

5. What are the reasons to sell MELI? Why should I sell MELI stock?

Let's look at the reasons to sell MELI stock (i.e., the bear case):

  • MercadoLibre operates in more than a dozen countries with their local currencies but reports in the U.S. dollar, exposing quarter-to-quarter financials to currency swings.
  • Because of tariffs, regulations, and the lack of reliable and low-cost cross-border logistics, MercadoLibre utilizes a separate site in each market, thus presenting additional barriers to cross-selling.
  • Near-term margins could be constrained by information technology investments as well as talent-attraction and retention labor expenses.
  • MELI forward P/E ratio is 675.56, which is high compared to its industry peers’ P/E ratios. See MELI forward P/E ratio chart.
  • MELI Price/Book ratio is 33.24, which is high compared to its industry peers’ P/B ratios. See MELI forward Price/Book ratio chart.
  • MELI Price/Sales ratio is 21.41, which is high compared to its industry peers’ P/S ratios. See MELI forward Price/Sales ratio chart.
  • MELI short share of float is 4.73%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See MELI short share of float chart.
  • MELI short interest (days to cover the shorts) ratio is 3.64. The stock garners more short interest than the average industry, sector or S&P 500 stock. See MELI short interest ratio chart.
  • MELI Enterprise Value/Revenue multiple is 20.24, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See MELI Enterprise Value/Revenue chart.

Key Stats

6. What are MELI key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for MELI:

Metrics MELI
Price $1,043.73
Average Price Target / Upside $1,170.95 / 12.19%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Specialty Retail
Sector Consumer Cyclical
Number of Employees 7,239
Market Cap $60.11B
Forward P/E Ratio 675.56
Price/Book Ratio 21.41
Revenue (TTM) $2.81B
YoY Quarterly Revenue Growth 61.10%
Profit Margin -5.89%

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