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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 its fourth-quarter 2022 results on Feb 23.

For the fourth quarter, the Zacks Consensus Estimate for sales is pegged at $2.95 billion, indicating growth of 38.6% from the prior-year quarter’s reported figure.

The consensus mark for fourth-quarter earnings is pegged at $2.11 per share. The company reported a loss of 92 cents per share in the year-ago quarter.

The company’s earnings beat estimates in two of the trailing four quarters and missed the same twice, the average negative surprise being 42.40%.

MercadoLibre, Inc. Price and EPS Surprise

 

MercadoLibre, Inc. Price and EPS Surprise

MercadoLibre, Inc. price-eps-surprise | MercadoLibre, Inc. Quote

Factors to Note

MercadoLibre is likely to have benefited from strength in the commerce and fintech businesses in the fourth quarter.

MELI’s robust product offerings and credit portfolio expansion are likely to have driven the company’s commerce and fintech revenues in the quarter under review.

MercadoLibre’s efforts to bolster the e-commerce business by promoting branding and loyalty are expected to have driven growth in its unique buyer base in the fourth quarter.

The robust mobile-point-of-sale (mPOS) business is likely to have contributed well to total payment volume growth of the company in the to-be-reported quarter.

Rapid adoption of the company’s Mobile Wallet is anticipated to have been positive for the company in the quarter under review.

MercadoLibre’s growing investments in the logistics business are expected to have favored the delivery system’s performance in the quarter under review.

The expanding managed logistics network is anticipated to have aided the company’s fourth-quarter performance.

However, increasing warehousing costs, free shipping subsidies and mPOS discounts are likely to have affected MELI’s profitability in the quarter under review.

The impacts of rising competitive pressure from e-commerce giants are expected to get reflected in the fourth-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, as mentioned below. 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 0.00% and it sports a Zacks Rank #1 at present.

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 season.

CrowdStrike (CRWD - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CrowdStrike is scheduled to release its fourth-quarter fiscal 2023 results on Mar 7. The Zacks Consensus Estimate for CRWD’s earnings is pegged at 43 cents per share, suggesting an increase of 43.3% from the prior-year quarter’s reported figure.

Axonics (AXNX - Free Report) has an Earnings ESP of +31.03% and a Zacks Rank #3 at present.

Axonics is set to report its fourth-quarter 2022 results on Mar 1. The Zacks Consensus Estimate for AXNX’s loss is pegged at 23 cents per share, narrower than the loss of 34 cents reported in the year-ago quarter.

Broadcom (AVGO - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank #3 at present.

Broadcom is scheduled to release its first-quarter fiscal 2023 results on Mar 2. The Zacks Consensus Estimate for AVGO’s earnings is pegged at $10.16 per share, suggesting an increase of 21.1% from the prior-year period’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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