Stock Story -
Fluid and gas handling company MRC (NYSE:MRC) will be reporting earnings tomorrow after market hours. Here's what to look for.
MRC Global beat analysts' revenue expectations by 6% last quarter, reporting revenues of $806 million, down 8.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Is MRC Global a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting MRC Global's revenue to decline 4.6% year on year to $831.3 million, a reversal from the 2.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MRC Global has missed Wall Street's revenue estimates four times over the last two years.
Looking at MRC Global's peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Watsco delivered year-on-year revenue growth of 6.8%, missing analysts' expectations by 2.1%, and Rush Enterprises reported revenues up 1.2%, topping estimates by 8.8%. Watsco traded down 2.9% following the results while Rush Enterprises was up 7.5%.
Read the full analysis of Watsco's and Rush Enterprises's results on StockStory.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 2.8% on average over the last month. MRC Global is up 6.1% during the same time and is heading into earnings with an average analyst price target of $16.3 (compared to the current share price of $13.31).
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