Shares of MercadoLibre, Inc. (MELI) gained 9.5% in Tuesday’s extended trading session after the company posted better-than-expected fourth-quarter results. The company provides the largest online commerce and payments ecosystem in Latin America.
Fourth-quarter earnings of $1.67 per share came above the consensus estimate of $0.95 per share. The company had reported a loss of $0.08 per share in the same quarter last year.
Net sales were up 60.5% year-over-year to $2.1 billion and exceeded analysts’ expectations of $2.02 billion. The beat was driven by 55.6% and 70.1% year-over-year growth in Commerce revenues and Fintech revenues, respectively.
During the quarter, unique active users reached 82.2 million, up from 74 million in the last year’s quarter. Gross merchandise volume increased 21.2% year-over-year to $8 billion. Moreover, the total payment volume rose 52.1% to $24.2 billion.
Commenting on the results, the Chief Financial Officer of MercadoLibre, Pedro Arnt, said, “With our teams’ resilience and focus on delivering on our strategic objectives, we have been able to overcome shifting pandemic lockdown measures, rising inflationary cost pressures and a highly competitive environment in the digital commerce space.”
Consensus among analysts is a Strong Buy based on 5 Buys and 1 Hold. The average MercadoLibre price target stands at $1,629.17 and implies upside potential of 83.5% to current levels.
TipRanks data shows that financial blogger opinions are 93% Bullish on MELI, compared to a sector average of 72%.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.