It's been a good week for MercadoLibre, Inc. (NASDAQ:MELI) shareholders, because the company has just released its latest annual results, and the shares gained 5.4% to US$2,223. Revenues were US$21b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$37.69 were also better than expected, beating analyst predictions by 13%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for MercadoLibre

Taking into account the latest results, the most recent consensus for MercadoLibre from 23 analysts is for revenues of US$25.7b in 2025. If met, it would imply a substantial 24% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 23% to US$46.34. In the lead-up to this report, the analysts had been modelling revenues of US$25.4b and earnings per share (EPS) of US$44.27 in 2025. So the consensus seems to have become somewhat more optimistic on MercadoLibre's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.0% to US$2,408. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic MercadoLibre analyst has a price target of US$3,000 per share, while the most pessimistic values it at US$1,761. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that MercadoLibre's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 24% growth on an annualised basis. This is compared to a historical growth rate of 38% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.4% per year. Even after the forecast slowdown in growth, it seems obvious that MercadoLibre is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards MercadoLibre following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on MercadoLibre. Long-term earnings power is much more important than next year's profits. We have forecasts for MercadoLibre going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for MercadoLibre you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.