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What's in the Store for MercadoLibre's (MELI) Q1 Earnings?

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·4 min read
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MercadoLibre, Inc. MELI is set to report first-quarter 2022 results on May 5.

For the first quarter, the Zacks Consensus Estimate for sales is pegged at $2.01 billion, indicating growth of 46.1% from the prior-year quarter’s reported figure.

The consensus mark for earnings is pegged at $1.66 per share, suggesting a massive jump from 31 cents of earnings per share reported in the year-ago quarter. Further, the estimate has been revised upward by 1.2% over the past seven days.

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

Factors to Note

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 first quarter.

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.

Strong investments in MercadoLibre’s logistics business are expected to have favored the delivery system’s performance in the to-be-reported quarter. Further, expanding managed logistics network is anticipated to have benefited the first-quarter performance of the business.

The company’s expanding online-to-offline offerings are likely to get reflected in the to-be-reported quarter’s results.

Its growing initiatives toward strengthening the fintech business are expected to have driven the total payment volumes in the to-be-reported quarter. Strength across online payment merchant service and online wallet is anticipated to have benefited the company in the quarter under review.

MercadoLibre’s solid momentum across the marketplace and non-marketplace businesses is expected to get reflected in first-quarter results.

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

Mounting interest accrual on convertible bonds, along with headwinds related to foreign exchange fluctuations, is anticipated to have been a major concern.

The impacts of rising competitive pressure from e-commerce giants are expected to get reflected in the first-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. 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 -21.24% and a Zacks Rank #3 (Hold).

Stocks to Consider

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

Analog Devices ADI has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year quarter’s reported figure.

Cisco Systems CSCO has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.

Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, indicating an increase of 3.61% from the prior-year period’s reported figure.

HP HPQ has an Earnings ESP of +0.78% and a Zacks Rank of 3 at present.

HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, suggesting an increase of 13.98% from the prior-year quarter’s reported figure.

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


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Analog Devices, Inc. (ADI) : Free Stock Analysis Report

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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report

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