The Latin American e-commerce powerhouse posted stellar results in its 2024 fourth quarter.
Shares of MercadoLibre (MELI 7.08%) rose as much as 12.5% on Friday morning, boosted by a great earnings report. By 12:15 p.m. ET today, the Argentine e-commerce giant’s stock had cooled down slightly to a 9.4% gain.
MercadoLibre’s great Q4 numbers
Fourth-quarter revenue rose 37% year over year to $6.06 billion. The company’s constant-currency sales soared 96%, backing out the effects of Argentina’s ongoing inflation crisis.
Adjusted earnings nearly quadrupled from the year-ago period, landing at $12.61 per share. Your average Wall Street analyst would have settled for earnings near $8.05 per share on revenue of approximately $5.79 billion.
The company saw strong sales growth in every reportable segment and market, led by a currency-adjusted tripling of consolidated sales in Argentina and a 106% increase in the third-party marketplace known as its commerce segment.
Stellar results despite an economic crisis
MercadoLibre’s stock is exploring fresh all-time highs again, breaking through a stubborn resistance around $2,100 per share. There’s nothing special about that price, other than the psychological impact of a nice, round number. Now it’s sniffing at the equally pleasing $2,300 level instead.
The stock trades at a lofty 61 times updated earnings, but it has earned that rich valuation with stellar growth despite an economic crisis in its domestic market. I can’t wait to see how MercadoLibre’s e-commerce platform will perform when the Argentine economy gets back on its feet.
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool has a disclosure policy.
