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MRC Global (MRC) Q2 Earnings Top Estimates, Revenues Down Y/Y
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MRC Global Inc. (MRC - Free Report) reported second-quarter 2024 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 24 cents. However, the bottom line declined 19.2% year over year.
Total revenues of $832 million surpassed the consensus estimate of $822 million. Yet, the top line decreased 4.5% year over year due to lower volume of sales in the Gas Utilities and Production & Transmission Infrastructure (PTI) sectors.
Revenues by Product Line
Based on MRC’s product line, revenues from carbon pipe, fittings and flanges were down 4.9% year over year to $235 million. Revenues from valves, automation, measurement and instrumentation were up 1% year over year to $302 million.
Gas product revenues decreased 9.8% year over year to $193 million. Sales of general products fell 10.7% to $67 million. Sales of stainless steel, alloy pipe and fittings decreased 2.8% to $35 million.
Revenues by Sector
Effective second-quarter 2023, MRC combined its Upstream Production and Midstream Pipeline into one sector, which is currently the PTI sector.
Based on the sectors served, revenues from Gas Utilities decreased 11.6% year over year to $287 million, while DIET sales inched up 9.4% to $268 million. Sales from the PTI sector decreased 8.6% year over year to $277 million.
Sales generated from the U.S. segment (representing 81.4% of revenues) totaled $677 million, down 6.9% year over year. The downtick was due to reduced demand in the Gas Utilities and PTI sectors.
Revenues from the Canada segment (4%) fell 13.2% year over year to $33 million due to weakness in the PTI sector.
Sales from the International segment (13.6%) grew 15.9% year over year to $122 million, driven by higher revenues from the PTI and DIET sectors.
Margin Profile
MRC Global’s cost of sales declined 5.3% year over year to $659 million. The adjusted gross profit was down 1.6% year over year to $184 million. The adjusted gross margin was 22.1% compared with 21.5% in the year-ago period.
Selling, general and administrative expenses were down 3.1% year over year to $126 million. Adjusted EBITDA increased 3.2% year over year to $65 million.
Balance Sheet and Cash Flow
Exiting the second quarter, MRC had a cash balance of $49 million compared with $131 million at the end of December 2023. Total debt (including the current portion) was $152 million at the end of the reported quarter.
In the first six months of 2024, the company generated net cash of $101 million from operating activities against $10 million cash used in the year-ago period. Capital spent on purchasing property, plant and equipment was $14 million, up 180% on a year-over-year basis.
In the first six months of the year, dividends paid on preferred stock were $12 million, flat year over year.
Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
Pentair plc (PNR - Free Report) reported second-quarter adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The reported figure also improved 18% from the year-ago quarter.
Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion.
Crown Holdings, Inc. (CCK - Free Report) reported second-quarter adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate of $1.59. The bottom line improved 8% year over year.
Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion.
A. O. Smith Corporation’s (AOS - Free Report) second-quarter adjusted earnings of $1.06 per share missed the Zacks Consensus Estimate of $1.07. However, the bottom line increased 5% on a year-over-year basis.
Net sales of $1.02 billion surpassed the consensus estimate of $992 million. The top line increased 7% year over year, driven by the strong demand for residential and commercial water heaters in North America.
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MRC Global (MRC) Q2 Earnings Top Estimates, Revenues Down Y/Y
MRC Global Inc. (MRC - Free Report) reported second-quarter 2024 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 24 cents. However, the bottom line declined 19.2% year over year.
Total revenues of $832 million surpassed the consensus estimate of $822 million. Yet, the top line decreased 4.5% year over year due to lower volume of sales in the Gas Utilities and Production & Transmission Infrastructure (PTI) sectors.
Revenues by Product Line
Based on MRC’s product line, revenues from carbon pipe, fittings and flanges were down 4.9% year over year to $235 million. Revenues from valves, automation, measurement and instrumentation were up 1% year over year to $302 million.
Gas product revenues decreased 9.8% year over year to $193 million. Sales of general products fell 10.7% to $67 million. Sales of stainless steel, alloy pipe and fittings decreased 2.8% to $35 million.
Revenues by Sector
Effective second-quarter 2023, MRC combined its Upstream Production and Midstream Pipeline into one sector, which is currently the PTI sector.
Based on the sectors served, revenues from Gas Utilities decreased 11.6% year over year to $287 million, while DIET sales inched up 9.4% to $268 million. Sales from the PTI sector decreased 8.6% year over year to $277 million.
MRC Global Inc. Price, Consensus and EPS Surprise
MRC Global Inc. price-consensus-eps-surprise-chart | MRC Global Inc. Quote
Revenues by Segment
Sales generated from the U.S. segment (representing 81.4% of revenues) totaled $677 million, down 6.9% year over year. The downtick was due to reduced demand in the Gas Utilities and PTI sectors.
Revenues from the Canada segment (4%) fell 13.2% year over year to $33 million due to weakness in the PTI sector.
Sales from the International segment (13.6%) grew 15.9% year over year to $122 million, driven by higher revenues from the PTI and DIET sectors.
Margin Profile
MRC Global’s cost of sales declined 5.3% year over year to $659 million. The adjusted gross profit was down 1.6% year over year to $184 million. The adjusted gross margin was 22.1% compared with 21.5% in the year-ago period.
Selling, general and administrative expenses were down 3.1% year over year to $126 million. Adjusted EBITDA increased 3.2% year over year to $65 million.
Balance Sheet and Cash Flow
Exiting the second quarter, MRC had a cash balance of $49 million compared with $131 million at the end of December 2023. Total debt (including the current portion) was $152 million at the end of the reported quarter.
In the first six months of 2024, the company generated net cash of $101 million from operating activities against $10 million cash used in the year-ago period. Capital spent on purchasing property, plant and equipment was $14 million, up 180% on a year-over-year basis.
In the first six months of the year, dividends paid on preferred stock were $12 million, flat year over year.
Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Companies
Pentair plc (PNR - Free Report) reported second-quarter adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The reported figure also improved 18% from the year-ago quarter.
Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion.
Crown Holdings, Inc. (CCK - Free Report) reported second-quarter adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate of $1.59. The bottom line improved 8% year over year.
Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion.
A. O. Smith Corporation’s (AOS - Free Report) second-quarter adjusted earnings of $1.06 per share missed the Zacks Consensus Estimate of $1.07. However, the bottom line increased 5% on a year-over-year basis.
Net sales of $1.02 billion surpassed the consensus estimate of $992 million. The top line increased 7% year over year, driven by the strong demand for residential and commercial water heaters in North America.