Wedbush Has Bearish Outlook for MercadoLibre FY2025 Earnings

Key Points

• Wedbush has revised its FY2025 earnings per share estimate for MercadoLibre down to $42.81, a decrease from the previous prediction of $44.33, while maintaining an "Outperform" rating and a $2,700 target price.
• The company reported $10.31 EPS for the last quarter, missing analysts' consensus expectations of $12.01 EPS, despite revenue exceeding estimates at $6.79 billion.
• Analyst ratings for MercadoLibre show a range of opinions, with one strong buy, fourteen buy ratings, and two holds, leading to an average rating of "Moderate Buy" with a consensus target price of $2,799.12.

MercadoLibre, Inc. (NASDAQ:MELI - Free Report) - Wedbush decreased their FY2025 earnings per share estimates for MercadoLibre in a report released on Thursday, October 23rd. Wedbush analyst S. Devitt now forecasts that the company will post earnings of $42.81 per share for the year, down from their prior forecast of $44.33. Wedbush currently has a "Outperform" rating and a $2,700.00 target price on the stock. The consensus estimate for MercadoLibre's current full-year earnings is $43.96 per share. Wedbush also issued estimates for MercadoLibre's Q4 2025 earnings at $13.19 EPS.

MercadoLibre (NASDAQ:MELI - Get Free Report) last announced its earnings results on Monday, August 4th. The company reported $10.31 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $12.01 by ($1.70). The company had revenue of $6.79 billion for the quarter, compared to the consensus estimate of $6.57 billion. MercadoLibre had a return on equity of 43.06% and a net margin of 8.52%.The company's revenue was up 33.8% compared to the same quarter last year. During the same period last year, the firm posted $10.48 EPS.

Other equities research analysts also recently issued reports about the company. Raymond James Financial reissued a "strong-buy" rating and set a $2,750.00 target price on shares of MercadoLibre in a research report on Tuesday, August 5th. Daiwa Capital Markets assumed coverage on MercadoLibre in a report on Friday, August 1st. They set a "buy" rating and a $3,000.00 price objective on the stock. JPMorgan Chase & Co. lowered their price objective on MercadoLibre from $2,700.00 to $2,600.00 and set a "neutral" rating on the stock in a research report on Friday, October 3rd. Scotiabank initiated coverage on MercadoLibre in a research report on Monday, July 28th. They issued a "sector outperform" rating and a $3,500.00 target price for the company. Finally, Benchmark reissued a "buy" rating and issued a $2,875.00 price target on shares of MercadoLibre in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, MercadoLibre currently has an average rating of "Moderate Buy" and a consensus target price of $2,799.12.

MercadoLibre Stock Up 2.5%

Shares of MELI opened at $2,148.32 on Friday. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.18 and a current ratio of 1.20. The company has a 50-day simple moving average of $2,320.26 and a 200-day simple moving average of $2,353.45. MercadoLibre has a 52 week low of $1,646.00 and a 52 week high of $2,645.22. The firm has a market capitalization of $108.91 billion, a P/E ratio of 53.06, a P/E/G ratio of 1.41 and a beta of 1.46.

Institutional Trading of MercadoLibre

Several large investors have recently added to or reduced their stakes in MELI. Jennison Associates LLC boosted its holdings in shares of MercadoLibre by 7.0% in the 2nd quarter. Jennison Associates LLC now owns 1,235,240 shares of the company's stock worth $3,228,460,000 after acquiring an additional 81,124 shares in the last quarter. Lavaca Capital LLC raised its position in MercadoLibre by 140,201.3% in the 2nd quarter. Lavaca Capital LLC now owns 1,066,290 shares of the company's stock valued at $2,786,888,000 after purchasing an additional 1,065,530 shares during the last quarter. Invesco Ltd. boosted its stake in MercadoLibre by 22.4% in the first quarter. Invesco Ltd. now owns 570,967 shares of the company's stock worth $1,113,881,000 after purchasing an additional 104,554 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of MercadoLibre by 21.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 550,433 shares of the company's stock worth $1,073,823,000 after purchasing an additional 96,283 shares during the last quarter. Finally, Generation Investment Management LLP increased its stake in shares of MercadoLibre by 3.3% in the first quarter. Generation Investment Management LLP now owns 530,564 shares of the company's stock valued at $1,035,061,000 after buying an additional 16,878 shares in the last quarter. 87.62% of the stock is owned by institutional investors.

MercadoLibre Company Profile

MercadoLibre, Inc operates online commerce platforms in the United States. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases digitally; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps.

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