HOUSTON - MRC Global Inc. (NYSE: NYSE:MRC), a leading global distributor of pipe, valves, and fittings, reported first-quarter earnings that surpassed analyst expectations, sending its shares up 2.1% in response to the positive results.
The company announced adjusted earnings per share (EPS) of $0.20 for the first quarter of 2024, which was $0.06 higher than the analyst consensus of $0.14. Revenue for the quarter was also higher than expected, coming in at $806 million against the consensus estimate of $760.64 million.
The company's financial performance represents a decrease in net income attributable to common stockholders when compared to the same quarter last year, which was $28 million, or $0.33 per diluted share. However, the sales figure showed a 9% decline year-over-year (YoY) from the first quarter of 2023, when revenue was $885 million.
Rob Saltiel, MRC Global's President and CEO, commented on the results, highlighting the company's ability to exceed expectations with a 5% sequential revenue growth and adjusted EBITDA margins of 7.1%.
"Our commitment to improving capital returns, maintaining cost discipline, and generating cash across the market cycle is reflected in our excellent results this quarter," said Saltiel.
He also noted the company's progress in strengthening the balance sheet and the intention to repay the Term Loan B in the second quarter, which is expected to leave the company with minimal net debt by the end of 2024.
The company's adjusted gross profit was reported at $174 million, or 21.6% of sales, for the first quarter of 2024, which is a slight decrease compared to the adjusted gross profit of $188 million, or 21.2% of sales, in the first quarter of 2023.
Despite the YoY decline in revenue and net income, the company's performance exceeded analyst projections, which has been reflected in the positive investor sentiment driving the stock price up following the earnings release.
MRC Global's continued focus on cost discipline and cash generation, along with the sequential improvement in revenue, provides a cautiously optimistic outlook for the company as it moves forward in the 2024 fiscal year.
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