MRC Global Inc. (MRC - Free Report) yesterday announced its updated projections for the third quarter of 2019, which account for the prevailing headwinds in its operating areas. In addition, the company briefed on its share buyback activities.
As noted, it is wary about the performance of its U.S. and Canada segments in the third quarter of 2019. It believes that a fall in consumer spending levels, and lower demand in the upstream and midstream sectors will adversely influence the U.S. operations while Canada operations will suffer from soft business in the upstream sector.
Accounting for the above-mentioned headwinds, the company lowered revenue projections for the third quarter of 2019. It now expects the top line to be $930-$950 million, suggesting a 4.5% decline (at mid-point) from second-quarter 2019 revenues of $984 million. Earlier, the company predicted third-quarter 2019 revenues to grow 2-4% from the previous quarter’s reported figure.
MRC Global believes that difficult operating conditions will persist in the fourth quarter as well. Revenues in the second half of 2019 will be lower than the first half. Also, the company’s annual revenue projection is no longer valid.
In addition, it intends to enhance operating cost-reducing actions, which will likely increase severance charges.
MRC Global bought back common shares worth $13 million in August 2019 under its share buyback program. It now has $12 million share buyback authorization left.
Zacks Rank & Stocks to Consider
With a market capitalization of approximately $1 billion, the company currently carries a Zacks Rank #3 (Hold). In the past 60 days, earnings estimates for MRC Global have been lowered. Currently, the Zacks Consensus Estimates for its earnings stands at 83 cents for 2019 and $1.28 for 2020, reflecting declines of 7.8% and 12.3% from the respective 60-day-ago figures.
MRC Global Inc. Price and Consensus
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MRC Global Inc. (MRC - Free Report) yesterday announced its updated projections for the third quarter of 2019, which account for the prevailing headwinds in its operating areas. In addition, the company briefed on its share buyback activities.
As noted, it is wary about the performance of its U.S. and Canada segments in the third quarter of 2019. It believes that a fall in consumer spending levels, and lower demand in the upstream and midstream sectors will adversely influence the U.S. operations while Canada operations will suffer from soft business in the upstream sector.
Accounting for the above-mentioned headwinds, the company lowered revenue projections for the third quarter of 2019. It now expects the top line to be $930-$950 million, suggesting a 4.5% decline (at mid-point) from second-quarter 2019 revenues of $984 million. Earlier, the company predicted third-quarter 2019 revenues to grow 2-4% from the previous quarter’s reported figure.
MRC Global believes that difficult operating conditions will persist in the fourth quarter as well. Revenues in the second half of 2019 will be lower than the first half. Also, the company’s annual revenue projection is no longer valid.
In addition, it intends to enhance operating cost-reducing actions, which will likely increase severance charges.
MRC Global bought back common shares worth $13 million in August 2019 under its share buyback program. It now has $12 million share buyback authorization left.
Zacks Rank & Stocks to Consider
With a market capitalization of approximately $1 billion, the company currently carries a Zacks Rank #3 (Hold). In the past 60 days, earnings estimates for MRC Global have been lowered. Currently, the Zacks Consensus Estimates for its earnings stands at 83 cents for 2019 and $1.28 for 2020, reflecting declines of 7.8% and 12.3% from the respective 60-day-ago figures.
MRC Global Inc. Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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