BUZZ-MercadoLibre sinks to lowest level in over a year after Q4 profit miss

Reuters02-26
BUZZ-<a href="https://laohu8.com/S/MELI">MercadoLibre</a> sinks to lowest level in over a year after Q4 profit miss

SAO PAULO, Feb 25 (Reuters) - ** Shares in e-commerce firm MercadoLibre MELI.O fall over 8% on Wednesday in New York, hitting their lowest level since December 2024, after the firm missed Q4 profit estimates.

** MercadoLibre's net profit fell 12.5% year-over-year to $559 million, hit by credit and logistics investments, missing the $587 million expected by analysts polled by LSEG.

** JPMorgan analysts say "margins came under more pressure than expected, mostly in Brazil", with recurring earnings before interest and taxes $(EBIT)$ also below their forecasts.

** However, they note that MercadoLibre reported solid growth trends.

** Safra analysts also welcome growth, but say it "came at cost, as margins - EBIT and net income - were under stronger-than-expected pressure."

** Shares in MercadoLibre fall 8.4% in afternoon trading to $1,760.4 each, after sinking to a low of $1,654.24 earlier in the session, while the Nasdaq 100 .NDX rises 1.2%.

(Reporting by Andre Romani; additional reporting by Paula Arend Laier; Editing by Sarah Morland)

((Andre.Romani@thomsonreuters.com; 11 991314109;11 56447500;))

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