MRC Global (MRC) Tops Q1 EPS by 9c, Revenues Beat

MRC Global (NYSE: MRC) reported Q1 EPS of $0.01, $0.09 better than the analyst estimate of ($0.08). Revenue for the quarter came in at $794 million versus the consensus estimate of $763.13 million.

Andrew R. Lane, MRC Global's president and chief executive officer stated, "I am pleased with our first quarter results, which was a solid performance given the market challenges. Revenue was up sequentially, we generated $37 million of cash from operations, and we reduced net debt by $26 million. Customer spending has slowed considerably in April in response to the unfavorable commodity price environment and a significant decline in oil and gas global demand brought about by the COVID-19 pandemic. As a result, we are taking steps to further reduce our operating costs by $80 million and reduce inventory by $140 million or more compared to 2019."

"Our counter cyclical cash flow business model and our available liquidity will allow us to withstand the current challenging market conditions and continue to focus on our long-term strategy to enhance shareholder value. We expect to generate over $200 million in cash flow from operations in 2020. At this level, our free cash flow would be approximately $160 million after accounting for the preferred stock dividend and capital expenditures, resulting in a free cash flow yield of nearly 50%, based on today's stock price," Mr. Lane added.

For earnings history and earnings-related data on MRC Global (MRC) click here.

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