Fluid and gas handling company MRC (NYSE:MRC) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.
MRC Global met analysts’ revenue expectations last quarter, reporting revenues of $797 million, down 10.2% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
Is MRC Global a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting MRC Global’s revenue to decline 5.4% year on year to $726.9 million, improving from the 11.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MRC Global has missed Wall Street’s revenue estimates four times over the last two years.
Looking at MRC Global’s peers in the industrial distributors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. DistributionNOW delivered year-on-year revenue growth of 2.9%, beating analysts’ expectations by 3.4%, and Watsco reported revenues up 9.4%, topping estimates by 5.3%. DistributionNOW traded up 21.5% following the results while Watsco was also up 5.4%.
Read our full analysis of DistributionNOW’s results here and Watsco’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the industrial distributors stocks have shown solid performance, the group has generally underperformed, with share prices down 5.2% on average over the last month. MRC Global is down 15.4% during the same time and is heading into earnings with an average analyst price target of $17.25 (compared to the current share price of $12.17).
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