MercadoLibre stock jumped late Thursday after the Latin America-focused e-commerce company reported strong fourth-quarter sales growth and earnings that easily beat expectations.
MercadoLibre said that it earned an adjusted $12.61 per share on sales of $6.1 billion for the December-ended quarter. Analysts polled by FactSet projected the Uruguay-based company would post adjusted earnings of $7.90 per share on sales of $5.8 billion.
Earnings increased 286% year-over-year for MercadoLibre while revenue grew 37%. MercadoLibre's earnings in Q4 2023 were stung by a one-off tax expense, contributing to the big year-over-year improvement in the most recent quarter.
On the stock market today, MercadoLibre stock is up roughly 13% near 2,385 in after-hours action. The late action points to a breakout above a double bottom base with a 2,146.82 buy point, as identified by MarketSurge.
MercadoLibre Touts Fintech, E-Commerce Strength
Often called the Amazon.com of Latin America, MercadoLibre operates an e-commerce platform across 18 countries. Its largest markets are Brazil, Mexico and Argentina, where it was founded. MercadoLibre also offers Mercado Pago, a fintech business that includes a Venmo-like digital wallet popular in the region.
The company touted the strength of both business in its letter to shareholders Thursday.
"MercadoLibre had another great year in 2024, with more consumers and merchants choosing us, taking us past the milestones of 100 million annual unique buyers and 60 million Fintech MAUs (monthly active users) for the first time," the letter said.
MercadoLibre's online marketplace posted gross merchandise volume of $14.5 billion, up 8%. Its fintech operations facilitated $58.9 billion in total payment volume, up 33% year-over-year.
MercadoLibre Stock Up 24% This Year
Prior to earnings, MercadoLibre stock gained a fraction in Thursday trading. Shares have gained 24% this year and 22% in the past 12 months.
Coming into the report, MELI stock had a perfect IBD Composite Rating of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating.
Further, MercadoLibre's IBD Relative Strength Rating was 74 out of 99. The RS Rating means that MELI stock has outperformed 74% of all stocks in IBD's database over the past year.
