Notable News to Watch: MRC Global Inc. (NYSE:MRC)

James Blair

MRC Global Inc. (NYSE:MRC) spotted trading -36.01% off 52-week high price. On the other end, the stock has been noted 9.64% away from the low price over the last 52-weeks. The stock changed 3.83% to recent value of $12.74. The stock transacted 697613 shares during most recent day however it has an average volume of 801.86K shares. The company has 83.14M of outstanding shares and 78.99M shares were floated in the market.  

On Sept. 05, 2019, MRC Global Inc. (NYSE:MRC) the largest global distributor, based on sales, of pipe, valves and fittings and related products and services to the energy industry,  provided updated revenue estimates for the third quarter of 2019.

Due to continued reductions in customer spending levels and lower demand in the third quarter, primarily in the midstream and upstream sectors in the U.S. and the upstream sector in Canada, the company is lowering its revenue estimates for the third quarter of 2019. Typically, the third quarter is the company’s highest revenue generating quarter; however, this year is not following historical patterns. The company is now forecasting revenue for the third quarter of 2019 to be between $930 million and $950 million, a sequential decline from the second quarter of 2019 of 4.5% at the mid-point. Previously, the company expected revenue for the third quarter of 2019 to increase sequentially 2% to 4%. Given the lower third quarter estimate, revenue for the second half of 2019 is now expected to be lower than the first half of the year. The company expects current conditions to persist, and slower activity levels to continue into the fourth quarter.

Given the change in the company’s forecasted revenue discussed above, the most recent annual guidance provided on August 1, 2019 no longer reflects the company’s current expectations.

As a result of lower customer spending levels in the second half of 2019, the company will be implementing further operating cost reductions in the second half of the year, above the initial 125 to 150 headcount reductions previously forecasted. This will result in additional severance charges as the operating costs are aligned with a lower revenue outlook.

 Its earnings per share (EPS) expected to touch remained 301.20% for this year while earning per share for the next 5-years is expected to reach at 15.00%. MRC has a gross margin of 17.10% and an operating margin of 3.20% while its profit margin remained 1.30% for the last 12 months. 

 According to the most recent quarter its current ratio was 2.6 that represents company’s ability to meet its current financial obligations. The price moved ahead of -1.48% from the mean of 20 days, -13.68% from mean of 50 days SMA and performed -19.43% from mean of 200 days price. Company’s performance for the week was 4.34%, -8.41% for month and YTD performance remained 4.17%.

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