MercadoLibre shares fall after 4th-quarter earnings, revenue misses Wall Street expectations

MercadoLibre shares fall, 4Q results miss Street

SEATTLE — Shares of MercadoLibre Inc., which operates an online marketplace and payments system in Latin America, sank Tuesday after the company posted lower fourth-quarter profit and revenue than Wall Street was expecting.

On Monday after the markets closed, MercadoLibre said fourth-quarter earnings rose 43 percent to $11.3 million, or 26 cents per share, from $7.9 million, or 18 cents per share in the same period in 2008. That’s a penny-per-share less than analysts were expecting, according to a Thomson Reuters survey.

Revenue rose 47 percent to $49 million from $33.4 million in the year-ago quarter, also missing analysts’ $59.2 million forecast.

The company said revenue was $7 million lower because Venezuela’s president, Hugo Chavez, in January devalued that nation’s currency to curb inflation. Excluding the effect of the higher exchange rate, revenue would have totaled $56 million.

MercadoLibre, who counts online auctioneer eBay Inc. as its largest shareholder, said its online payments revenue more than doubled in the quarter to $14.9 million. Marketplace revenue rose 31 percent to $34.1 million.

Buenos Aires, Argentina-based MercadoLibre’s stock fell $2.88, or 7 percent, to close at $38.05.

For the full year, MercadoLibre said its net income increased 77 percent to $33.2 million, or 75 cents per share, from $18.8 million, or 42 cents per share, in 2008. Revenue increased 26 percent to $172.8 million from $137 million.