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MercadoLibre shares tumble 8% after FQ4 net profit misses estimates

Published 23/02/2024, 08:42 am
Updated 23/02/2024, 08:42 am
© Reuters

MercadoLibre (NASDAQ:MELI) unveiled its FQ4 results on Thursday following the market close.

The company’s earnings per share (EPS) for the quarter came in at $7.39, excluding items, which exceeded expectations of $7.07. Revenue stood at $4.26 billion, also better than the consensus forecast of $4.14 billion.

It reported a net profit of $165 million, flat compared to the year-ago period despite an increase in sales. This was due to a significant tax impact.

The company's net profit was affected by exceptional tax provisions in Brazil, totaling $351 million, short of the $356 million analysts had anticipated.

Excluding the tax impact, MercadoLibre's net profit for the quarter would have reached $383 million.

The online marketplace operator’s shares fell over 8% in after-hours.

Income from operations hit $240 million, or $572 million when excluding one-off expenses, while gross merchandise volume (GMV) increased 39.9% year-over-year to $13.5 billion.

“We look back on 2023 as a remarkable year in which we delivered strong top line growth, market share gains in most countries and improved operating margins, whilst continuing to invest in growth,” the company said in a statement.

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