Can Mercadolibre Beat These Numbers?

Mercadolibre (Nasdaq: MELI  ) is expected to report Q4 earnings around Feb. 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Mercadolibre's revenues will expand 21.7% and EPS will grow 29.8%.

The average estimate for revenue is $105.2 million. On the bottom line, the average EPS estimate is $0.61.

Revenue details
Last quarter, Mercadolibre notched revenue of $97.3 million. GAAP reported sales were 19% higher than the prior-year quarter's $81.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.59. GAAP EPS of $0.59 for Q3 were 1.7% lower than the prior-year quarter's $0.60 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 73.6%, 180 basis points worse than the prior-year quarter. Operating margin was 34.7%, 200 basis points worse than the prior-year quarter. Net margin was 26.8%, 540 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $375.9 million. The average EPS estimate is $2.22.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,087 members out of 1,160 rating the stock outperform, and 73 members rating it underperform. Among 279 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 266 give Mercadolibre a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mercadolibre is outperform, with an average price target of $98.28.

Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Mercadolibre on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

• Add Mercadolibre to My Watchlist.