Wedbush Has Pessimistic Outlook of MercadoLibre Q3 Earnings

Key Points

• Wedbush analysts have lowered their Q3 2025 EPS forecast for MercadoLibre from $11.30 to $10.48, while maintaining an "Outperform" rating with a target price of $2,700.00.
• Despite a 33.8% year-over-year revenue increase for the latest quarter, MercadoLibre missed EPS expectations of $12.01, reporting only $10.31.
• Market sentiment remains mixed, with a consensus rating of "Moderate Buy" and varying target prices from different brokerages, indicating ongoing investor interest.

MercadoLibre, Inc. (NASDAQ:MELI - Free Report) - Equities research analysts at Wedbush cut their Q3 2025 EPS estimates for MercadoLibre in a research report issued to clients and investors on Tuesday, August 5th. Wedbush analyst S. Devitt now forecasts that the company will post earnings of $10.48 per share for the quarter, down from their prior estimate of $11.30. 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 $13.79 EPS and FY2025 earnings at $44.33 EPS.

Several other brokerages also recently commented on MELI. Morgan Stanley reissued an "overweight" rating on shares of MercadoLibre in a research note on Thursday, May 1st. Barclays lowered their price objective on MercadoLibre from $3,100.00 to $3,000.00 and set an "overweight" rating for the company in a research note on Wednesday, July 23rd. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $2,700.00 price objective on shares of MercadoLibre in a research note on Tuesday. JPMorgan Chase & Co. upped their price objective on MercadoLibre from $2,250.00 to $2,600.00 and gave the company a "neutral" rating in a research note on Thursday, May 22nd. Finally, Susquehanna reiterated a "positive" rating and issued a $2,975.00 target price (up from $2,840.00) on shares of MercadoLibre in a report on Thursday, June 26th. Three analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $2,789.44.

MercadoLibre Stock Down 3.8%

Shares of NASDAQ MELI opened at $2,317.22 on Thursday. The company has a current ratio of 1.20, a quick ratio of 1.18 and a debt-to-equity ratio of 0.57. The company has a market cap of $117.48 billion, a price-to-earnings ratio of 57.23, a PEG ratio of 1.44 and a beta of 1.46. MercadoLibre has a 12 month low of $1,646.00 and a 12 month high of $2,645.22. The stock has a 50-day moving average price of $2,445.98 and a two-hundred day moving average price of $2,234.89.

MercadoLibre (NASDAQ:MELI - Get Free Report) last posted its quarterly earnings results on Monday, August 4th. The company reported $10.31 EPS for the quarter, missing analysts' consensus estimates of $12.01 by ($1.70). The company had revenue of $6.79 billion during the quarter, compared to analyst estimates of $6.57 billion. MercadoLibre had a net margin of 8.52% and a return on equity of 46.11%. The firm's revenue for the quarter was up 33.8% compared to the same quarter last year. During the same period last year, the firm earned $10.48 EPS.

Hedge Funds Weigh In On MercadoLibre

A number of large investors have recently modified their holdings of the company. Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in shares of MercadoLibre by 7.1% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 44,049 shares of the company's stock worth $115,128,000 after purchasing an additional 2,924 shares in the last quarter. Freemont Management S.A. purchased a new stake in MercadoLibre in the 2nd quarter valued at $4,182,000. Aviva PLC raised its position in MercadoLibre by 1.3% in the 2nd quarter. Aviva PLC now owns 60,036 shares of the company's stock valued at $156,912,000 after buying an additional 790 shares during the last quarter. Los Angeles Capital Management LLC raised its position in MercadoLibre by 210.1% in the 2nd quarter. Los Angeles Capital Management LLC now owns 15,329 shares of the company's stock valued at $40,064,000 after buying an additional 10,386 shares during the last quarter. Finally, Prospera Financial Services Inc raised its position in MercadoLibre by 497.5% in the 2nd quarter. Prospera Financial Services Inc now owns 1,410 shares of the company's stock valued at $3,685,000 after buying an additional 1,174 shares during the last quarter. 87.62% of the stock is currently owned by institutional investors.

About MercadoLibre

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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