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.
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.
Earnings call transcript: MRC Global Q4 2024 EPS miss triggers stock drop
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