MercadoLibre Q4 EPS Misses by $0.56 as Revenue Jumps 45%, Shares Fall 7.7%
MercadoLibre reported Q4 EPS of $11.03, missing consensus by $0.56 and sliding from $12.61 a year earlier. Revenue climbed 45% to $8.759 billion, beating estimates, while operating income rose to $889 million (10.1% margin) and analysts cut price targets, sending shares down about 7.7%.
1. Earnings and Revenue Results
MercadoLibre posted Q4 EPS of $11.03, missing expectations by $0.56 and down from $12.61 a year earlier, while revenue grew 45% to $8.759 billion, surpassing analyst estimates.
2. Operational Metrics
The company delivered operating income of $889 million, a 10.1% margin, and net income of $559 million, a 6.4% margin, driven by Payment Volume of $83.7 billion (+42%) and Gross Merchandise Volume of $19.9 billion (+37%).
3. Analyst Target Price Cuts
Following the earnings miss, Barclays, Cantor Fitzgerald, Wedbush and BTIG trimmed their price targets by $200–$400, maintaining overweight or outperform ratings but reflecting lowered expectations for the stock's near-term upside.
4. Stock Reaction
Shares fell approximately 7.7% on the earnings release as investors reacted to the EPS shortfall despite strong top-line growth and operational performance metrics.