MercadoLibre Reports Strong Q4, Stock Surges 13% in After-Hours

MercadoLibre's Q4 2024 report exceeds expectations significantly. The company showcases a robust revenue growth and earnings surge, leading to a 13% rise in stock price post-results announcement.

Date: 21-02-2025

AI Rating: 8

Positive Results for MercadoLibre

MercadoLibre's fourth-quarter report shows impressive performance in multiple areas. Notably, the total revenue reached $4.41 billion, with a significant increase to $6.06 billion expected next year, reflecting a 37% growth and beating expectations.

The adjusted earnings per share (EPS) soared to $3.25, with forecasts predicting a rise to $12.61 for Q4 2024, illustrating a remarkable 288% increase and also exceeding analyst expectations. Such strong EPS growth is a clear indicator of profitability and enhanced shareholder value.

Revenue and Volume Growth

In addition to EPS, total revenue growth paired with an increase in gross merchandise volume, which is expected to reach $14.55 billion next year (+8%), positions MercadoLibre favorably in the market. This indicates a growing user base and wider market penetration.

The company’s assets under management also reflect substantial progress, jumping from $4.63 billion to an anticipated $10.58 billion, marking an increase of 129%. This is indicative of strong performance in the company's financial services, which bolstered overall growth.

Market Response

Following the release of these strong results, MercadoLibre saw a notable increase in stock value, climbing by over 13% in after-hours trading, potentially setting the stage for all-time highs in the regular session. This immediate market reaction is a testament to investor confidence stemming from the company’s performance metrics.

Overall, MercadoLibre is demonstrating strong momentum in both revenue and profitability, which could significantly affect its stock price in the near future as it captures more of the Latin American market.

Stocks: MELI