MRC Earnings Prediction
The chart below shows how MRC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MRC sees a +2.26% change in stock price 10 days leading up to the earnings, and a -0.33% change 10 days following the report. On the earnings day itself, the stock moves by +0.43%. This data can give you a slight idea of what to expect for the next quarter's release.
MRC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
--
--
--
Gross Margin
--
--
--
Operating Margin
--
--
--
Net Margin
--
--
--
EPS
--
--
--
No Data Available
MRC Earnings Analysis
MRC Global Inc Corporation (MRC.N) Earnings Conference Call
Positive
Strategic Revenue and Profit Growth: 2024 was a pivotal year for MRC Global, with strategic actions leading to higher revenue growth and improved profitability.
Capital Structure Simplification: The company simplified its capital structure by repurchasing convertible preferred shares, which is expected to be accretive to cash generation and earnings in 2025.
Strategic Business Sale: MRC Global announced the sale of its Canada business, allowing a focus on key geographies with stronger revenue growth potential, expected to enhance overall profitability and margins.
Share Buyback Initiative: A $125 million share buyback program was initiated, reflecting confidence in the company's future and financial flexibility.
Record Operating Cash Flow: The company achieved $268 million in operating cash flow from continuing operations for the full year, one of the highest amounts ever, due to improved working capital efficiency.
Strong Profit Margin Performance: Adjusted gross profit margins exceeded 21% for the third consecutive year, indicating a strong financial performance driven by high-value products and services.
International Revenue Growth: The International segment saw a 14% revenue growth in 2024, marking the second consecutive year of double-digit growth, with a robust $254 million backlog entering 2025.
Revenue Growth Outlook: MRC Global expects low to upper single-digit revenue growth in 2025, supported by improving fundamentals in the gas utilities sector and a bullish outlook for midstream natural gas projects.
Growth Initiatives and Opportunities: The company is optimistic about growth initiatives in chemicals, mining, and data centers, with significant revenue opportunities already secured in these sectors.
Negative
Quarterly Sales Decline: Total company sales for the fourth quarter were $664,000,000, a 14% sequential decrease and 10% lower than the same quarter a year ago.
Gas Utility Sales Decline: Gas utility sales were $253,000,000 in the fourth quarter, a $40,000,000 or 14% decline, primarily driven by reduced customer activity and delayed spending.
Q4 Revenue Decline: The diet sector fourth quarter revenue was $208,000,000, a decrease of $31,000,000 or 13% due to timing of project deliveries and turnaround activity declines.
Fourth Quarter Revenue Decline: DTI sector revenue for the fourth quarter was $203,000,000, a decrease of $36,000,000 or 15% due to reduced upstream activity and a more pronounced year-end seasonal pullback.
Quarterly Revenue Decline: U.S. revenue was $542,000,000 in the fourth quarter, a $102,000,000 or 16% decrease from the previous quarter.
International Revenue Decline: International revenue was $122,000,000 in the fourth quarter, down $5,000,000 or 4% from lower turnaround activity and timing of project deliveries.
Decline in Adjusted EBITDA: Adjusted EBITDA for the fourth quarter was $32,000,000 or 4.8% of sales, indicating a decline in profitability compared to previous quarters.
Net Loss Comparison: Net loss from continuing operations was $1,000,000 or $0.14 per diluted share, compared to net income from continuing operations of $29,000,000 or $0.27 per diluted share in the third quarter.
Decline in Adjusted Net Income: Adjusted net income from continuing operations was $4,000,000 for the fourth quarter, down from $25,000,000 in the third quarter.
Inventory Compliance Issues: The company detected non-compliance in inventory cycle count information at two locations, leading to a significant effort to validate inventory balances, although no adjustments were required.
MRC FAQs
How does MRC typically perform around its earnings report dates?
Is MRC Global Inc (MRC) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
MRC Earning Call Sentiment
Earnings call transcript: MRC Global Q4 2024 EPS miss triggers stock drop
MRC.N
3.51%Positive
The earnings call reveals mixed signals. While the company reports strong operating cash flow and a share buyback program, there are significant concerns about declining revenue, increased SG&A expenses, and competitive pressures. The Q&A section highlights uncertainties regarding tariffs and margin guidance, despite optimism in international markets and a promising joint venture. Given the market cap of $1.06 billion, these factors suggest a neutral stock price movement in the short term, as positive and negative elements balance each other out.
