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The company has been benefiting from its e-commerce business, driven by strength in its first-party services, particularly in Brazil. Enhancing user experience for buyers on the back of an expanding logistic network with record fulfillment penetration is expected to have continued aiding the e-commerce business in the quarter under review.
Strong momentum across its Fintech business, owing to an expanding product offering and enhanced user experience in Mercado Pago, is likely to have driven the total payment volumes in the to-be-reported quarter.
The company’s growing ad initiatives, like the launch of an automated buying platform for display ads accompanied by live reports and unique insight analysis, enhanced bidding algorithm for product ads and the introduction of new placements on search and product pages for more visibility to sponsored products, are likely to have bolstered its ads revenues in the first quarter.
MELI’s increasing focus on improving navigation in fashion, apparel and sports categories with standardized filters across brands and sellers is expected to have acted as a tailwind for the company.
However, mounting expenses related to warehousing and mPOS discounts are likely to have negatively impacted the top-line growth during the first quarter.
Macroeconomic uncertainties and rising e-commerce competition are expected to have been headwinds for the company.
The Zacks Consensus Estimate for gross merchandise volume (GMV) is pegged at $12.2 billion, indicating growth of 29.2% from the year-ago reported figure.
The consensus mark for total payments volume is pegged at $52.3 billion, implying year-over-year growth of 41.3%
The consensus mark for the number of successful items sold is pegged at 375.73 million, suggesting a year-over-year rise of 21.6%. The same for the number of successful items shipped is pegged at 370.3 million, indicating year-over-year growth of 22.6%.
Estimates Trend
For the first quarter of 2024, the Zacks Consensus Estimate for revenues is pegged at $3.94 billion, suggesting growth of 29.9% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $6.64 per share, indicating a rise of 67.3% from the year-ago quarter’s reported number. The consensus mark has decreased 10.8% in the past 30 days.
What Our Model Says
Per the Zacks model, 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. That’s exactly the case here.
MercadoLibre currently has an Earnings ESP of +1.92% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this season.
APi Group is scheduled to release first-quarter 2024 results on May 2. The Zacks Consensus Estimate for APG’s earnings is pegged at 32 cents per share, indicating growth of 28% from the year-ago quarter’s reported figure.
Arista Networks (ANET - Free Report) has an Earnings ESP of +2.49% and a Zacks Rank #1 at present.
ANET is set to report its first-quarter 2024 results on May 7. The Zacks Consensus Estimate for ANET’s earnings is pegged at $1.74 per share, indicating growth of 21.7% from the year-ago quarter’s reported figure.
Cardinal Health (CAH - Free Report) has an Earnings ESP of +1.11% and a Zacks Rank #3 at present.
CAH is scheduled to release third-quarter fiscal 2024 results on May 2. The Zacks Consensus Estimate for CAH’s earnings is pegged at $1.95 per share, indicating growth of 12.1% from the year-ago quarter’s reported figure.
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What You Should Do With MercadoLibre (MELI) Ahead of Q1 Earnings
MercadoLibre (MELI - Free Report) is scheduled to report its first-quarter 2024 results on May 2.
The company has been benefiting from its e-commerce business, driven by strength in its first-party services, particularly in Brazil. Enhancing user experience for buyers on the back of an expanding logistic network with record fulfillment penetration is expected to have continued aiding the e-commerce business in the quarter under review.
Strong momentum across its Fintech business, owing to an expanding product offering and enhanced user experience in Mercado Pago, is likely to have driven the total payment volumes in the to-be-reported quarter.
The company’s growing ad initiatives, like the launch of an automated buying platform for display ads accompanied by live reports and unique insight analysis, enhanced bidding algorithm for product ads and the introduction of new placements on search and product pages for more visibility to sponsored products, are likely to have bolstered its ads revenues in the first quarter.
MELI’s increasing focus on improving navigation in fashion, apparel and sports categories with standardized filters across brands and sellers is expected to have acted as a tailwind for the company.
However, mounting expenses related to warehousing and mPOS discounts are likely to have negatively impacted the top-line growth during the first quarter.
Macroeconomic uncertainties and rising e-commerce competition are expected to have been headwinds for the company.
MercadoLibre, Inc. Price and EPS Surprise
MercadoLibre, Inc. price-eps-surprise | MercadoLibre, Inc. Quote
Upswing In Metrics
The Zacks Consensus Estimate for gross merchandise volume (GMV) is pegged at $12.2 billion, indicating growth of 29.2% from the year-ago reported figure.
The consensus mark for total payments volume is pegged at $52.3 billion, implying year-over-year growth of 41.3%
The consensus mark for the number of successful items sold is pegged at 375.73 million, suggesting a year-over-year rise of 21.6%. The same for the number of successful items shipped is pegged at 370.3 million, indicating year-over-year growth of 22.6%.
Estimates Trend
For the first quarter of 2024, the Zacks Consensus Estimate for revenues is pegged at $3.94 billion, suggesting growth of 29.9% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $6.64 per share, indicating a rise of 67.3% from the year-ago quarter’s reported number. The consensus mark has decreased 10.8% in the past 30 days.
What Our Model Says
Per the Zacks model, 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. That’s exactly the case here.
MercadoLibre currently has an Earnings ESP of +1.92% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this season.
APi Group (APG - Free Report) has an Earnings ESP of +2.06% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
APi Group is scheduled to release first-quarter 2024 results on May 2. The Zacks Consensus Estimate for APG’s earnings is pegged at 32 cents per share, indicating growth of 28% from the year-ago quarter’s reported figure.
Arista Networks (ANET - Free Report) has an Earnings ESP of +2.49% and a Zacks Rank #1 at present.
ANET is set to report its first-quarter 2024 results on May 7. The Zacks Consensus Estimate for ANET’s earnings is pegged at $1.74 per share, indicating growth of 21.7% from the year-ago quarter’s reported figure.
Cardinal Health (CAH - Free Report) has an Earnings ESP of +1.11% and a Zacks Rank #3 at present.
CAH is scheduled to release third-quarter fiscal 2024 results on May 2. The Zacks Consensus Estimate for CAH’s earnings is pegged at $1.95 per share, indicating growth of 12.1% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.