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MercadoLibre, Inc. (MELI - Free Report) reported first-quarter 2022 earnings of $1.30 per share, which compares favorably with the year-ago loss of 68 cents per share. However, the figure missed the Zacks Consensus Estimate by 21.7%.
The company’s revenues surged 63% on a year-over-year basis (67% on an FX-neutral basis) to $2.25 billion. The top line surpassed the Zacks Consensus Estimate of $2.01 billion.
The total revenues were driven by accelerating commerce and fintech revenues, which grew 44% and 113% year over year to $1.3 billion and $971 million, respectively.
Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company.
MercadoLibre’s rising gross merchandise volume (GMV), owing to increasing mobile GMV, remained another positive.
Strong shipment growth on MercadoEnvios and the growing penetration of managed networks in the reported quarter were tailwinds.
Strengthening momentum across Mercado Fondo and Mercado Credito also benefited the company.
MercadoLibre, Inc. Price, Consensus and EPS Surprise
Brazil: Net revenues in the first quarter were $1.25 billion (55.7% of total revenues), surging 63% year over year.
Argentina: The market generated revenues of $518 million (23% of the top line), which rose 74% year over year.
Mexico: Net revenues in the reported quarter were $364 million (16.2% of revenues), soaring 58% year over year.
Other countries: The markets generated revenues of $114 million (5.1% of total revenues), climbing 39% on a year-over-year basis.
Key Metrics
GMV of $7.7 billion jumped 27% and 32% on a reported and a FX-neutral basis, respectively, from the year-ago quarter.
The number of successful items sold was 267 million, up 20.3% year over year. The number of successful items shipped rose 22.1% year over year to 254 million. This can be attributed to the sturdy performance of MercadoEnvios.
TPV increased 72% and 81.2% year over year on a reported and a FX-neutral basis, respectively, to $25.3 billion. This was driven by the strong performance of MercadoPago. Off-Marketplace TVP was $17.3 billion, up 139% year over year on a FX-neutral basis.
Acquiring TPV, which includes on-platform, online Payments, MPoS and QR payments, was $17.4 billion, up 46% year over year.
Also, $7.9 billion of digital accounts’ TPV, including wallet payments, P2P transfers between Mercado Pago accounts, and card transactions, surged 178% year over year.
TPV on marketplace was $7.4 billion, up 27.6% year over year. Total payment transactions increased 73.2% year over year to 1.1 billion.
Unique active users totaled 81 million, up 15.7% year over year.
Operating Details
For the first quarter, the gross margin was 47.7%, expanding 480 basis points (bps) year over year.
Operating expenses were $934 million, which increased 86.8% year over year. As a percentage of revenues, the figure expanded 520 bps from the year-ago quarter to 41.5% in the reported quarter.
The company reported $139 million of income from operations in the reported quarter, which rose 52.7% year over year. The operating margin was 6.2%, contracting 40 bps from the prior-year quarter.
Balance Sheet
As of Dec 31, 2021, cash and cash equivalents were $1.6 billion, down from $2.6 billion as of Dec 31, 2021.
Short-term investments were $1.4 billion for the first quarter, up from $809.5 million in the previous quarter.
Accounts receivable amounted to $98 million, down from $98.2 million in the fourth quarter. The inventory level at the first-quarter end was $239 million, down from $253.1 million at the end of the prior quarter.
Zacks Rank & Stocks to Consider
Currently, the company carries a Zacks Rank #3 (Hold).
DICK’s is scheduled to release fourth-quarter fiscal 2021 results on Mar 8. It has gained 48.7% over a year. The long-term earnings growth rate for DKS is currently projected at 11.7%.
Lowe’s is slated to report fourth-quarter fiscal 2021 results on Feb 23. It has gained 28.1% over a year. The long-term earnings growth rate for LOW is currently projected at 13.8%.
Dollar Tree is slated to report fourth-quarter fiscal 2021 results on Mar 2. It has gained 27% over a year. The long-term earnings growth rate for DLTR is currently projected at 12.2%.
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MercadoLibre (MELI) Q1 Earnings Miss, Revenues Rise Y/Y
MercadoLibre, Inc. (MELI - Free Report) reported first-quarter 2022 earnings of $1.30 per share, which compares favorably with the year-ago loss of 68 cents per share. However, the figure missed the Zacks Consensus Estimate by 21.7%.
The company’s revenues surged 63% on a year-over-year basis (67% on an FX-neutral basis) to $2.25 billion. The top line surpassed the Zacks Consensus Estimate of $2.01 billion.
The total revenues were driven by accelerating commerce and fintech revenues, which grew 44% and 113% year over year to $1.3 billion and $971 million, respectively.
Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company.
MercadoLibre’s rising gross merchandise volume (GMV), owing to increasing mobile GMV, remained another positive.
Strong shipment growth on MercadoEnvios and the growing penetration of managed networks in the reported quarter were tailwinds.
Strengthening momentum across Mercado Fondo and Mercado Credito also benefited the company.
MercadoLibre, Inc. Price, Consensus and EPS Surprise
MercadoLibre, Inc. price-consensus-eps-surprise-chart | MercadoLibre, Inc. Quote
Quarter in Detail
Brazil: Net revenues in the first quarter were $1.25 billion (55.7% of total revenues), surging 63% year over year.
Argentina: The market generated revenues of $518 million (23% of the top line), which rose 74% year over year.
Mexico: Net revenues in the reported quarter were $364 million (16.2% of revenues), soaring 58% year over year.
Other countries: The markets generated revenues of $114 million (5.1% of total revenues), climbing 39% on a year-over-year basis.
Key Metrics
GMV of $7.7 billion jumped 27% and 32% on a reported and a FX-neutral basis, respectively, from the year-ago quarter.
The number of successful items sold was 267 million, up 20.3% year over year. The number of successful items shipped rose 22.1% year over year to 254 million. This can be attributed to the sturdy performance of MercadoEnvios.
TPV increased 72% and 81.2% year over year on a reported and a FX-neutral basis, respectively, to $25.3 billion. This was driven by the strong performance of MercadoPago. Off-Marketplace TVP was $17.3 billion, up 139% year over year on a FX-neutral basis.
Acquiring TPV, which includes on-platform, online Payments, MPoS and QR payments, was $17.4 billion, up 46% year over year.
Also, $7.9 billion of digital accounts’ TPV, including wallet payments, P2P transfers between Mercado Pago accounts, and card transactions, surged 178% year over year.
TPV on marketplace was $7.4 billion, up 27.6% year over year. Total payment transactions increased 73.2% year over year to 1.1 billion.
Unique active users totaled 81 million, up 15.7% year over year.
Operating Details
For the first quarter, the gross margin was 47.7%, expanding 480 basis points (bps) year over year.
Operating expenses were $934 million, which increased 86.8% year over year. As a percentage of revenues, the figure expanded 520 bps from the year-ago quarter to 41.5% in the reported quarter.
The company reported $139 million of income from operations in the reported quarter, which rose 52.7% year over year. The operating margin was 6.2%, contracting 40 bps from the prior-year quarter.
Balance Sheet
As of Dec 31, 2021, cash and cash equivalents were $1.6 billion, down from $2.6 billion as of Dec 31, 2021.
Short-term investments were $1.4 billion for the first quarter, up from $809.5 million in the previous quarter.
Accounts receivable amounted to $98 million, down from $98.2 million in the fourth quarter. The inventory level at the first-quarter end was $239 million, down from $253.1 million at the end of the prior quarter.
Zacks Rank & Stocks to Consider
Currently, the company carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are DICK’s Sporting Goods (DKS - Free Report) , Lowe’s Companies (LOW - Free Report) and Dollar Tree (DLTR - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DICK’s is scheduled to release fourth-quarter fiscal 2021 results on Mar 8. It has gained 48.7% over a year. The long-term earnings growth rate for DKS is currently projected at 11.7%.
Lowe’s is slated to report fourth-quarter fiscal 2021 results on Feb 23. It has gained 28.1% over a year. The long-term earnings growth rate for LOW is currently projected at 13.8%.
Dollar Tree is slated to report fourth-quarter fiscal 2021 results on Mar 2. It has gained 27% over a year. The long-term earnings growth rate for DLTR is currently projected at 12.2%.