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MercadoLibre (MELI) to Report Q4 Earnings: What's in Store?

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·4 min read
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MercadoLibre, Inc. MELI is set to report fourth-quarter 2021 results on Feb 22.

For the fourth quarter, the Zacks Consensus Estimate for sales is pegged at $2 billion, indicating growth of 50.5% from the prior-year quarter’s reported figure.

The consensus mark for fourth-quarter earnings is pegged at 89 cents per share, which has been unchanged over the past 30 days. Notably, the company reported a loss of $1.02 in the year-ago quarter.

Factors to Consider

MercadoLibre’s strength across the marketplace and non-marketplace businesses is expected to get reflected in the fourth-quarter results.

The company’s growing initiatives toward strengthening the fintech business are expected to have contributed well to its upcoming results.

MercadoLibre, Inc. Price and EPS Surprise

MercadoLibre, Inc. Price and EPS Surprise
MercadoLibre, Inc. Price and EPS Surprise

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

The increasing adoption of MercadoPago on the back of the well-performing merchant services and mobile wallet businesses is expected to have driven the company’s total payment volume in the quarter to be reported.

MercadoLibre’s strengthening key offerings, especially online-to-offline offerings, are expected to have consistently aided the top line in the to-be-reported quarter.

Robust mobile-point-of-sale services are anticipated to have bolstered transactions per unique active device in the soon-to-be-reported quarter.

Strong wallet services are anticipated to have boosted the company’s in-store QR payment volume in the fourth quarter.

Apart from this, MercadoLibre’s efforts to bolster the e-commerce business by promoting branding and loyalty are likely to have driven growth in its unique buyer base in the fourth quarter amid the pandemic.

Strengthening shipping services are expected to have helped the company deliver an enhanced shopping experience to customers in the quarter to be reported. It is likely to have contributed to shipment growth via MercadoEnvios in the quarter under review.

Rising investment by the company in its logistics services is anticipated to have supported the performance of its delivery system in the quarter to be reported.

However, increasing warehousing costs of managed networks and expenses related to infrastructure transition on public clouds are likely to have impacted its profitability in the quarter under review.

Mounting interest accrual on convertible bonds and headwinds related to foreign exchange fluctuations are anticipated to have been major concerns.

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. 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 a Zacks Rank #3.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

NetApp NTAP has an Earnings ESP of +0.39% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NetApp is scheduled to release third-quarter fiscal 2022 results on Feb 23. The Zacks Consensus Estimate for NTAP’s earnings is pegged at $1.28 per share, suggesting an increase of 16.4% from the prior-year reported figure.

American Electric Power AEP has an Earnings ESP of +0.43% and a Zacks Rank #3 at present.

American Electric Power is set to report fourth-quarter 2021 results on Feb 24. The Zacks Consensus Estimate for AEP’s earnings is pegged at 94 cents per share, which suggests an increase of 8.1% from the prior-year reported figure.

Zscaler ZS has an Earnings ESP of +3.60% and a Zacks Rank #2 at present.

Zscaler is scheduled to release second-quarter fiscal 2022 results on Feb 24. The Zacks Consensus Estimate for ZS’s earnings is pegged at 11 cents per share, which suggests an increase of 10% from the prior-year reported figure.

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


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