Fluid and gas handling company MRC (NYSE: MRC) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
MRC Global missed analysts’ revenue expectations by 8.7% last quarter, reporting revenues of $664 million, down 10.3% year on year. It was a disappointing quarter for the company, with a miss of analysts’ Fittings revenue 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 11.9% year on year to $710 million, a further deceleration from the 8.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 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 Q1 results, giving us a hint as to what we can expect. Watsco’s revenues decreased 2.2% year on year, missing analysts’ expectations by 7.3%, and Global Industrial reported flat revenue, topping estimates by 4.6%. Watsco traded down 10.1% following the results while Global Industrial was up 15.7%.
Read our full analysis of Watsco’s results here and Global Industrial’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 13% on average over the last month. MRC Global is up 23.1% during the same time and is heading into earnings with an average analyst price target of $14.33 (compared to the current share price of $12.09).
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