MercadoLibre Stock Drops 12% Following Q4 Earnings Announcement
MercadoLibre (NASDAQ:MELI) shares dropped more than 12% intra-day today after the company announced its fourth-quarter financial results.
For the quarter, the company achieved an earnings per share (EPS) of $7.39, when excluding certain items, outperforming the expected $7.07 by analysts. Its revenue reached $4.26 billion, surpassing the anticipated $4.14 billion.
Despite the uptick in sales, the company's net profit remained steady at $165 million, mirroring the figure from the same quarter last year. Exceptional tax provisions in Brazil, amounting to $351 million, influenced the company's net profit, which was below the $356 million forecasted by analysts. Without the tax provisions, MercadoLibre's net profit for the quarter would have escalated to $383 million.
| Symbol | Price | %chg |
|---|---|---|
| BELI.JK | 456 | -0.88 |
| MAPA.JK | 870 | -0.57 |
| ACES.JK | 845 | -0.59 |
| BUKA.JK | 128 | 0.78 |
MercadoLibre Stock Drops 12% Following Q4 Earnings Announcement
MercadoLibre (NASDAQ:MELI) shares dropped more than 12% intra-day today after the company announced its fourth-quarter financial results.
For the quarter, the company achieved an earnings per share (EPS) of $7.39, when excluding certain items, outperforming the expected $7.07 by analysts. Its revenue reached $4.26 billion, surpassing the anticipated $4.14 billion.
Despite the uptick in sales, the company's net profit remained steady at $165 million, mirroring the figure from the same quarter last year. Exceptional tax provisions in Brazil, amounting to $351 million, influenced the company's net profit, which was below the $356 million forecasted by analysts. Without the tax provisions, MercadoLibre's net profit for the quarter would have escalated to $383 million.
MercadoLibre Upgraded to Buy After Strong Black Friday Performance
Bank of America analysts upgraded the rating for Mercadolibre (NASDAQ:MELI) to Buy from Neutral, following impressive Black Friday performance. Along with this upgrade, the price target for Mercadolibre has been significantly increased by $650, bringing it to $2000 per share.
The analysts’ decision is rooted in Mercadolibre's strong early Black Friday results, which showed considerable momentum. Preliminary figures from Nov 23 and 24 (up to 5 pm) indicate an 80% year-on-year increase in Brazilian Gross Merchandise Volume (GMV). This growth is particularly notable given that the overall Brazilian market saw a 15.1% year-on-year contraction, according to Bank of America.
Additionally, for November to date, MercadoLibre has reported a substantial 39% year-on-year growth in Brazilian GMV. In Mexico, during the Buen Fin promotional event, Mercadolibre showcased a 40% increase in GMV.
The sales of consumer electronics in Brazil during the Black Friday event surged by 140%, with significant demand in categories like cell phones, notebooks, and TVs.
MercadoLibre Upgraded to Buy After Strong Black Friday Performance
Bank of America analysts upgraded the rating for Mercadolibre (NASDAQ:MELI) to Buy from Neutral, following impressive Black Friday performance. Along with this upgrade, the price target for Mercadolibre has been significantly increased by $650, bringing it to $2000 per share.
The analysts’ decision is rooted in Mercadolibre's strong early Black Friday results, which showed considerable momentum. Preliminary figures from Nov 23 and 24 (up to 5 pm) indicate an 80% year-on-year increase in Brazilian Gross Merchandise Volume (GMV). This growth is particularly notable given that the overall Brazilian market saw a 15.1% year-on-year contraction, according to Bank of America.
Additionally, for November to date, MercadoLibre has reported a substantial 39% year-on-year growth in Brazilian GMV. In Mexico, during the Buen Fin promotional event, Mercadolibre showcased a 40% increase in GMV.
The sales of consumer electronics in Brazil during the Black Friday event surged by 140%, with significant demand in categories like cell phones, notebooks, and TVs.
