MercadoLibre Q3 earnings miss triggers double‑digit stock decline
MercadoLibre reported third‑quarter revenue of $10.75 billion, a 45% year‑over‑year increase, but earnings per share came in at $8.83 versus the $9.27 consensus. Operating income fell 6.6% to $676 million, pushing the operating margin to 6.3% from 9.8% a year earlier. Management said the company accepted lower margins to fund free‑shipping and warehouse expansion, and the stock slid about 10% in the week after the release and roughly 20% since early October.
Why it matters
The miss drove the share price down to a 34‑times forward earnings multiple, well below its five‑year average of 62x, creating a potential buying opportunity for value‑focused investors. The margin compression signals short‑term profitability pressure that could affect cash‑flow generation until the network scale offsets the higher costs.
Key facts
- 1Q3 revenue was $10.75 billion. finance.yahoo.com
- 2Net income for the quarter was $448 million. finance.yahoo.com
- 3EPS for the quarter was $8.83 on a basic and diluted basis. finance.yahoo.com
- 4Analysts had expected EPS of $9.27. tikr.com
- 5Revenue grew 45% year over year. tikr.com
- 6Operating income fell 6.6% to $676 million, giving an operating margin of 6.3% versus 9.8% a year earlier. tikr.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.