MercadoLibre Inc (NASDAQ:MELI) shares are trading lower on Wednesday after it reported fourth‑quarter earnings that fell short of expectations, even though revenue came in ahead of estimates.
- MercadoLibre stock is among today’s weakest performers. What’s pressuring MELI stock?
The miss prompted analysts at BTIG, Wedbush and Barclays to trim their price targets, adding pressure to the stock.
Earnings Miss Overshadows Strong Revenue
The company posted earnings of $11.03 per share, below the $11.59 analysts were expecting and down from $12.61 a year ago. Revenue, however, was a bright spot at $8.759 billion, beating estimates and rising nearly 45% year-over-year.
Operational Performance Remained Strong
MercadoLibre highlighted solid fourth‑quarter operating results, including $889 million in operating income with a 10.1% margin and $559 million in net income with a 6.4% margin.
Total Payment Volume reached $83.7 billion, up more than 42% year-over-year, while Gross Merchandise Volume climbed to $19.9 billion, an increase of nearly 37%. The company emphasized record customer satisfaction and strong Net Promoter Scores across its major markets.
Analysts Continue To Trim Price Targets
MercadoLibre recently experienced a downshift in target price by several notable financial institutions. On Feb. 25, Barclays maintained an Overweight rating but lowered the target from $2900 to $2600. Cantor Fitzgerald followed suit, maintaining an Overweight rating but decreasing the target from $2750 to $2400. Wedbush also mirrored this action, maintaining an Outperform rating but reducing the target from $2600 to $2400.
BTIG also took a similar stance on Feb. 25, maintaining a Buy rating on MercadoLibre but marking down the target price from $2750 to $2650. Additionally, a week prior on Feb. 17, Wedbush had also maintained an Outperform rating for MercadoLibre but had then lowered the target from $2700 to $2600.
MELI Price Action: MercadoLibre shares were down 7.66% at $1775.25 at the time of publication on Wednesday, according to Benzinga Pro.
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