MRC Global (MRC) Reports Q3: Everything You Need To Know Ahead Of Earnings

Fluid and gas handling company MRC (NYSE:MRC) will be reporting results tomorrow afternoon. Here’s what investors should know.

MRC Global met analysts’ revenue expectations last quarter, reporting revenues of $832 million, down 4.5% year on year. Despite the sales decline, it was still a decent quarter for the company, with an impressive beat of analysts’ EBITDA 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 10.3% year on year to $797 million, a further deceleration from the 1.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 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 Q3 results, giving us a hint as to what we can expect. Watsco delivered year-on-year revenue growth of 1.6%, missing analysts’ expectations by 3.6%, and Richardson Electronics reported revenues up 2.2%, topping estimates by 8.7%. Watsco traded down 1.4% following the results while Richardson Electronics was also down 2.5%.

Read our full analysis of Watsco’s results here and Richardson Electronics’s results here.

Investors in the industrial distributors segment have had steady hands going into earnings, with share prices flat over the last month. MRC Global is down 4.7% during the same time and is heading into earnings with an average analyst price target of $16 (compared to the current share price of $12.18).

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