We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MRC Global (MRC) Q1 Earnings & Revenues Beat, Increase Y/Y
Read MoreHide Full Article
MRC Global Inc. (MRC - Free Report) reported first-quarter 2023 adjusted earnings (excluding a penny from non-recurring items) of 32 cents per share, which beat the Zacks Consensus Estimate of 29 cents. The bottom line jumped 88.2% year over year owing to higher sales.
Total revenues of $885 million surpassed the Zacks Consensus Estimate of $844.8 million. The top line increased 19.3% year over year owing to growth in the Downstream and Industrial and Energy Transition (DIET) sector.
Revenues by Product Line
Based on MRC Global’s product line, revenues from carbon pipe, fittings and flanges increased 21.7% year over year to $258 million. The same from valves, automation, measurement and instrumentation was up 25.5% from the year-ago quarter’s figure to $315 million.
Gas product revenues grew 12.5% to $207 million. Sales for general products increased 23.7% to $73 million. The same for stainless steel, alloy pipe and fittings declined 11.1% to $32 million.
Revenues by Sector
Effective first-quarter 2023, MRC Global combined its Upstream Production and Midstream Pipeline into one sector, Production and Transmission Infrastructure (PTI).
Based on the sectors served, revenues from the Gas utilities sector increased 13% year over year to $307 million, while the DIET sector sales climbed 23% year over year to $278 million. Increased activity levels related to customers' integrity upgrade and smart meter replacement programs drove Gas Utilities sector revenues, while LNG projects, increased turnaround and maintenance spending for refining, chemicals and mining customers boosted DIET sector sales. Sales from the PTI sector augmented 22% year over year to $300 million due to increased activity levels in the Permian.
Revenues by Segment
Sales generated from the U.S. segment (representing 83.6% of first-quarter revenues) totaled $740 million, rising 20% year over year. The results benefited from improvements in DIET, PTI and Gas Utilities sectors.
Revenues from the Canada segment (4.7% of the quarter’s revenues) dipped 2% year over year to $42 million due to foreign currency headwinds and weakness in Canada sales within the DIET and Gas Utilities sectors.
Sales from the International segment (11.6% of the quarter’s revenues) surged 27% to $103 million due to higher revenues from the Netherlands, U.A.E., Singapore and U.K. within the DIET sector, and higher sales from the United Kingdom, Norway, Singapore and Australia within the PTI sector.
Margin Profile
In the quarter under review, MRC Global’s cost of sales increased 16.5% year over year to $706 million. The adjusted gross profit in the quarter increased 23.7% year over year to $188 million. The adjusted gross margin was 21.2% in the reported quarter compared with 20.5% in the year-ago period. Selling, general and administrative expenses were up 14% year over year to $122 million. Adjusted EBITDA increased 43.8% year over year to $69 million.
Balance Sheet and Cash Flow
Exiting the first quarter, MRC Global had a cash balance of $39 million compared with $32 million at the end of December 2022. Long-term debt, net, was $387 million at the end of the first quarter compared with $337 million at the end of December 2022.
In the first quarter, MRC Global used net cash of $30 million in operating activities compared with $13 million in the year-ago period. Capital spent on purchasing property, plant and equipment was $3 million, up 50% year over year.
In the first quarter, MRC paid dividends of $6 million, flat year over year.
Zacks Rank & Key Picks
MRC Global carries a Zacks Rank #4 (Sell).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
Image: Bigstock
MRC Global (MRC) Q1 Earnings & Revenues Beat, Increase Y/Y
MRC Global Inc. (MRC - Free Report) reported first-quarter 2023 adjusted earnings (excluding a penny from non-recurring items) of 32 cents per share, which beat the Zacks Consensus Estimate of 29 cents. The bottom line jumped 88.2% year over year owing to higher sales.
Total revenues of $885 million surpassed the Zacks Consensus Estimate of $844.8 million. The top line increased 19.3% year over year owing to growth in the Downstream and Industrial and Energy Transition (DIET) sector.
Revenues by Product Line
Based on MRC Global’s product line, revenues from carbon pipe, fittings and flanges increased 21.7% year over year to $258 million. The same from valves, automation, measurement and instrumentation was up 25.5% from the year-ago quarter’s figure to $315 million.
MRC Global Inc. Price, Consensus and EPS Surprise
MRC Global Inc. price-consensus-eps-surprise-chart | MRC Global Inc. Quote
Gas product revenues grew 12.5% to $207 million. Sales for general products increased 23.7% to $73 million. The same for stainless steel, alloy pipe and fittings declined 11.1% to $32 million.
Revenues by Sector
Effective first-quarter 2023, MRC Global combined its Upstream Production and Midstream Pipeline into one sector, Production and Transmission Infrastructure (PTI).
Based on the sectors served, revenues from the Gas utilities sector increased 13% year over year to $307 million, while the DIET sector sales climbed 23% year over year to $278 million. Increased activity levels related to customers' integrity upgrade and smart meter replacement programs drove Gas Utilities sector revenues, while LNG projects, increased turnaround and maintenance spending for refining, chemicals and mining customers boosted DIET sector sales. Sales from the PTI sector augmented 22% year over year to $300 million due to increased activity levels in the Permian.
Revenues by Segment
Sales generated from the U.S. segment (representing 83.6% of first-quarter revenues) totaled $740 million, rising 20% year over year. The results benefited from improvements in DIET, PTI and Gas Utilities sectors.
Revenues from the Canada segment (4.7% of the quarter’s revenues) dipped 2% year over year to $42 million due to foreign currency headwinds and weakness in Canada sales within the DIET and Gas Utilities sectors.
Sales from the International segment (11.6% of the quarter’s revenues) surged 27% to $103 million due to higher revenues from the Netherlands, U.A.E., Singapore and U.K. within the DIET sector, and higher sales from the United Kingdom, Norway, Singapore and Australia within the PTI sector.
Margin Profile
In the quarter under review, MRC Global’s cost of sales increased 16.5% year over year to $706 million. The adjusted gross profit in the quarter increased 23.7% year over year to $188 million. The adjusted gross margin was 21.2% in the reported quarter compared with 20.5% in the year-ago period. Selling, general and administrative expenses were up 14% year over year to $122 million. Adjusted EBITDA increased 43.8% year over year to $69 million.
Balance Sheet and Cash Flow
Exiting the first quarter, MRC Global had a cash balance of $39 million compared with $32 million at the end of December 2022. Long-term debt, net, was $387 million at the end of the first quarter compared with $337 million at the end of December 2022.
In the first quarter, MRC Global used net cash of $30 million in operating activities compared with $13 million in the year-ago period. Capital spent on purchasing property, plant and equipment was $3 million, up 50% year over year.
In the first quarter, MRC paid dividends of $6 million, flat year over year.
Zacks Rank & Key Picks
MRC Global carries a Zacks Rank #4 (Sell).
Some better-ranked stocks within the broader Industrial Products sector are as follows:
Ingersoll Rand (IR - Free Report) presently carries a Zacks Rank #2 (Buy). The company pulled off a trailing four-quarter earnings surprise of 12.6%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.
Ingersoll Rand has an estimated earnings growth rate of 7.6% for the current year. The stock has rallied 12.8% in the year-to-date period.
Allegion (ALLE - Free Report) presently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 12.5%, on average.
Allegion has an estimated earnings growth rate of 15.1% for the current year. The stock has gained 2.2% in the year-to-date period.