We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for MercadoLibre's (MELI) Q1 Earnings?
Read MoreHide Full Article
MercadoLibre, Inc. (MELI - Free Report) is set to report first-quarter 2021 results on May 5.
For the first quarter, the Zacks Consensus Estimate for sales is pegged at $1.19 billion, indicating growth of 83.1% from the prior-year quarter’s reported figure.
Further, the consensus mark for earnings is pinned at 27 cents per share, whereas it reported a loss of 44 cents per share in the year-ago quarter.
In the last reported quarter, MercadoLibre reported a loss of $1.02 per share, which lagged the Zacks Consensus Estimate for earnings of 39 cents per share. Notably, the company reported a loss of $1.11 per share in the year-ago quarter.
Further, revenues surged 96.9% on a year-over-year basis (148.5% on a FX-neutral basis) to $1.33 billion. The top line surpassed the Zacks Consensus Estimate of $1.23 billion.
MercadoLibre’s efforts to bolster the e-commerce business by promoting branding and loyalty are likely to have driven growth in its unique buyer base in the first quarter amid the pandemic.
Further, strengthening shipping services are expected to have helped the company in delivering an enhanced shopping experience to customers in the quarter to be reported. Moreover, it is likely to have contributed to shipment growth via MercadoEnvios in the quarter under review.
Additionally, strong investments in MercadoLibre’s logistics business are expected to have favored the delivery system’s performance in the to-be-reported quarter. Further, expanding managed logistics networkis anticipated tohave benefited the first-quarter performance of the business.
Furthermore, the company’s expanding online-to-offline offerings are likely to get reflected in the to-be-reported quarter’s results.
Moreover, its growing initiatives toward strengthening fintech business are likely to have driven the total payment volumes (TPV) in the to-be-reported quarter. Moreover, strength across online payment merchant service and online wallet is anticipated to have benefited the company in the quarter under review.
MercadoLibre’s solid momentum across the marketplace and non-marketplace businesses is expected to get reflected in first-quarter results.
However, increasing warehousing costs of managed network and expenses related to infrastructure transition on public clouds are likely to have impacted the company’s profitability in the quarter under review.
Moreover, costs related to free shipping subsidies and discounts on mPOS devices are expected to have weighed on margin expansion in the first quarter.
Additionally, rising inventory costs of the company, owing to increasing sales of mPOS devices, and rising branding and marketing initiatives are expectedto have hurt the soon-to-be-reported quarterly results.
Further, mounting interest accrual on convertible bonds along with headwinds related to foreign exchange fluctuations is anticipated to have been major concerns.
Furthermore, the impacts of rising competitive pressure from e-commerce giants are expected to get reflected in the first-quarter results.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for MercadoLibre this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MercadoLibre has an Earnings ESP of -88.89% and a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Here are some stocks worth considering as our model shows that these have the right combination of elements to beat estimates this earnings season.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank of 2 currently.
Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank of 2 at present.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
What's in the Cards for MercadoLibre's (MELI) Q1 Earnings?
MercadoLibre, Inc. (MELI - Free Report) is set to report first-quarter 2021 results on May 5.
For the first quarter, the Zacks Consensus Estimate for sales is pegged at $1.19 billion, indicating growth of 83.1% from the prior-year quarter’s reported figure.
Further, the consensus mark for earnings is pinned at 27 cents per share, whereas it reported a loss of 44 cents per share in the year-ago quarter.
In the last reported quarter, MercadoLibre reported a loss of $1.02 per share, which lagged the Zacks Consensus Estimate for earnings of 39 cents per share. Notably, the company reported a loss of $1.11 per share in the year-ago quarter.
Further, revenues surged 96.9% on a year-over-year basis (148.5% on a FX-neutral basis) to $1.33 billion. The top line surpassed the Zacks Consensus Estimate of $1.23 billion.
MercadoLibre, Inc. Price and EPS Surprise
MercadoLibre, Inc. price-eps-surprise | MercadoLibre, Inc. Quote
Factors to Note
MercadoLibre’s efforts to bolster the e-commerce business by promoting branding and loyalty are likely to have driven growth in its unique buyer base in the first quarter amid the pandemic.
Further, strengthening shipping services are expected to have helped the company in delivering an enhanced shopping experience to customers in the quarter to be reported. Moreover, it is likely to have contributed to shipment growth via MercadoEnvios in the quarter under review.
Additionally, strong investments in MercadoLibre’s logistics business are expected to have favored the delivery system’s performance in the to-be-reported quarter. Further, expanding managed logistics networkis anticipated tohave benefited the first-quarter performance of the business.
Furthermore, the company’s expanding online-to-offline offerings are likely to get reflected in the to-be-reported quarter’s results.
Moreover, its growing initiatives toward strengthening fintech business are likely to have driven the total payment volumes (TPV) in the to-be-reported quarter. Moreover, strength across online payment merchant service and online wallet is anticipated to have benefited the company in the quarter under review.
MercadoLibre’s solid momentum across the marketplace and non-marketplace businesses is expected to get reflected in first-quarter results.
However, increasing warehousing costs of managed network and expenses related to infrastructure transition on public clouds are likely to have impacted the company’s profitability in the quarter under review.
Moreover, costs related to free shipping subsidies and discounts on mPOS devices are expected to have weighed on margin expansion in the first quarter.
Additionally, rising inventory costs of the company, owing to increasing sales of mPOS devices, and rising branding and marketing initiatives are expectedto have hurt the soon-to-be-reported quarterly results.
Further, mounting interest accrual on convertible bonds along with headwinds related to foreign exchange fluctuations is anticipated to have been major concerns.
Furthermore, the impacts of rising competitive pressure from e-commerce giants are expected to get reflected in the first-quarter results.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for MercadoLibre this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MercadoLibre has an Earnings ESP of -88.89% and a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Here are some stocks worth considering as our model shows that these have the right combination of elements to beat estimates this earnings season.
Vishay Intertechnology, Inc. (VSH - Free Report) has an Earnings ESP of +5.22% and a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rankstocks here.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank of 2 currently.
Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank of 2 at present.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>