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MercadoLibre (MELI) to Report Q4 Earnings: What's in Store?
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MercadoLibre, Inc. (MELI - Free Report) is set to report fourth-quarter 2023 results on Feb 22.
For the fourth quarter, the Zacks Consensus Estimate for sales is pegged at $4.14 billion, indicating growth of 38% from the prior-year quarter’s reported figure.
The consensus mark for fourth-quarter earnings is pegged at $6.66 per share, suggesting a 104.9% jump from the year-ago quarter’s actual. The consensus estimate has been unchanged over the past 30 days.
The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 32.9%.
MercadoLibre’s efforts to bolster its e-commerce business by promoting branding and loyalty are expected to have driven growth in its unique buyer base in the fourth quarter.
The impacts of the company’s expanding online-to-offline offerings are likely to get reflected in the upcoming results.
MercadoLibre’s solid momentum across the marketplace and non-marketplace businesses is expected to get reflected in its fourth-quarter results.
Strong investments in its logistics business are anticipated to have favored the delivery system’s performance in the to-be-reported quarter. Expanding the managed logistics network is likely to have benefited the business’s fourth-quarter performance.
Robust shipping services are expected to have helped the company deliver an enhanced shopping experience to its customers in the quarter to be reported. It is likely to have contributed to shipment growth via MercadoEnvios in the quarter under review.
The company’s growing initiatives toward strengthening the fintech business are expected to have driven the total payment volumes in the to-be-reported quarter. Strength across online payment merchant services and online wallets is anticipated to have benefited MELI in the quarter to be reported.
However, increasing warehousing costs for managed networks and expenses related to infrastructure transitions on public clouds are likely to have been concerning.
Upswing in Metrics to Consider
The above-mentioned factors are likely to have driven growth in the company’s key metrics in the fourth quarter.
The Zacks Consensus Estimate for gross merchandise volume (GMV) is pegged at $12.44 billion, indicating growth of 29.4% from the year-ago reported figure.
The consensus mark for the number of successful items sold is pegged at 388 million, suggesting a year-over-year rise of 20.9%. The same for the number of successful items shipped is pegged at 366 million, indicating year-over-year growth of 17.7%.
The Zacks Consensus Estimate for total payments volume is pegged at $50.5 billion, implying year-over-year growth of 40.5%.
What Our Model Says
Our proven model does not 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 is not the case here, as elaborated below.
MercadoLibre has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MELI currently has a Zacks Rank #2.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this time around.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’s earnings is pinned at 19 cents per share, indicating growth from the year-ago quarter’s reported loss of 75 cents.
Eldorado Gold (EGO - Free Report) currently has an Earnings ESP of +5.88% and a Zacks Rank #2.
Eldorado Gold is set to announce fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for EGO’s earnings is pinned at 21 cents per share, indicating growth of 50% from the year-ago quarter’s reported figure.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank #3 at present.
Booking Holdings is scheduled to release fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for BKNG’s earnings is pegged at $29.69 per share, suggesting a jump of 20% from the prior-year quarter.
Image: Bigstock
MercadoLibre (MELI) to Report Q4 Earnings: What's in Store?
MercadoLibre, Inc. (MELI - Free Report) is set to report fourth-quarter 2023 results on Feb 22.
For the fourth quarter, the Zacks Consensus Estimate for sales is pegged at $4.14 billion, indicating growth of 38% from the prior-year quarter’s reported figure.
The consensus mark for fourth-quarter earnings is pegged at $6.66 per share, suggesting a 104.9% jump from the year-ago quarter’s actual. The consensus estimate has been unchanged over the past 30 days.
The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 32.9%.
MercadoLibre, Inc. Price and EPS Surprise
MercadoLibre, Inc. price-eps-surprise | MercadoLibre, Inc. Quote
Factors to Consider
MercadoLibre’s efforts to bolster its e-commerce business by promoting branding and loyalty are expected to have driven growth in its unique buyer base in the fourth quarter.
The impacts of the company’s expanding online-to-offline offerings are likely to get reflected in the upcoming results.
MercadoLibre’s solid momentum across the marketplace and non-marketplace businesses is expected to get reflected in its fourth-quarter results.
Strong investments in its logistics business are anticipated to have favored the delivery system’s performance in the to-be-reported quarter. Expanding the managed logistics network is likely to have benefited the business’s fourth-quarter performance.
Robust shipping services are expected to have helped the company deliver an enhanced shopping experience to its customers in the quarter to be reported. It is likely to have contributed to shipment growth via MercadoEnvios in the quarter under review.
The company’s growing initiatives toward strengthening the fintech business are expected to have driven the total payment volumes in the to-be-reported quarter. Strength across online payment merchant services and online wallets is anticipated to have benefited MELI in the quarter to be reported.
However, increasing warehousing costs for managed networks and expenses related to infrastructure transitions on public clouds are likely to have been concerning.
Upswing in Metrics to Consider
The above-mentioned factors are likely to have driven growth in the company’s key metrics in the fourth quarter.
The Zacks Consensus Estimate for gross merchandise volume (GMV) is pegged at $12.44 billion, indicating growth of 29.4% from the year-ago reported figure.
The consensus mark for the number of successful items sold is pegged at 388 million, suggesting a year-over-year rise of 20.9%. The same for the number of successful items shipped is pegged at 366 million, indicating year-over-year growth of 17.7%.
The Zacks Consensus Estimate for total payments volume is pegged at $50.5 billion, implying year-over-year growth of 40.5%.
What Our Model Says
Our proven model does not 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 is not the case here, as elaborated below.
MercadoLibre has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MELI currently has a Zacks Rank #2.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this time around.
The Gap (GPS - Free Report) has an Earnings ESP of +24.44% and flaunts a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’s earnings is pinned at 19 cents per share, indicating growth from the year-ago quarter’s reported loss of 75 cents.
Eldorado Gold (EGO - Free Report) currently has an Earnings ESP of +5.88% and a Zacks Rank #2.
Eldorado Gold is set to announce fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for EGO’s earnings is pinned at 21 cents per share, indicating growth of 50% from the year-ago quarter’s reported figure.
Booking Holdings (BKNG - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank #3 at present.
Booking Holdings is scheduled to release fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for BKNG’s earnings is pegged at $29.69 per share, suggesting a jump of 20% from the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.