
- MercadoLibre reported a net revenue of $6.1 billion for the fourth quarter.
- The company’s net revenue exceeded analysts’ estimates of $5.96 billion.
- Net income for MercadoLibre reached $639 million.
- This net income significantly surpassed the expected $406.4 million.
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MercadoLibre on Smartkarma
Analyst coverage of MercadoLibre on Smartkarma showcases a positive sentiment towards the company’s recent performance. According to Baptista Research, MercadoLibre reported strong financial results in the third quarter of 2024, with impressive growth in its e-commerce and fintech sectors across Latin America. Brazil saw a 34% increase in gross merchandise volume (GMV) year-on-year, while Mexico experienced a 27% rise. The company also gained significant market share in these key markets.
Leandro Gubler maintains an optimistic outlook on MercadoLibre, highlighting the potential for improved financial and business risk profiles if the company achieves investment-grade status. However, weaker-than-expected results in 3Q24 were attributed to strategic investments in credit growth and logistics expansion, leading to a contraction in EBIT margin by 950 bps year-over-year. Despite short-term profitability challenges, the long-term prospects for MercadoLibre’s growth remain promising.
A look at MercadoLibre Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investment analysts see a positive long-term outlook for MercadoLibre, the online trading platform serving Latin American markets. Smartkarma Smart Scores reveal strong scores in Growth and Resilience, indicating promising future expansion and stability. The company’s value score sits in the middle range, showing good potential for growth. Despite a low dividend score, MercadoLibre’s momentum score is also solid. Overall, the company is viewed favorably for its growth prospects and resilience in the market.
MercadoLibre, Inc. operates an online trading site catering to Latin American markets, allowing businesses and individuals to list and sell items online. The platform offers various services, including classified advertisements for vehicles and real estate, as well as online payment solutions. With promising scores in Growth and Resilience, MercadoLibre is positioned for long-term success in the competitive online trading industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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