MRC Global (MRC) Tops Q3 EPS by 3c, Revenues Beat

MRC Global (NYSE: MRC) reported Q3 EPS of $0.16, $0.03 better than the analyst estimate of $0.13. Revenue for the quarter came in at $942 million versus the consensus estimate of $939.16 million.

Andrew R. Lane, MRC Global's president and chief executive officer stated, "We are pleased to see progress from our strategy to increase margins, as we achieved 20% adjusted gross profit this quarter. Revenue in the third quarter, however, was lower due to progressively weaker market conditions and unusually low customer spending patterns. We remain focused on maximizing shareholder returns throughout the cycle as we repurchased $13 million of our stock during the third quarter. So far in 2019, we have generated $134 million of cash from operations, reduced debt, improved working capital efficiency and executed cost reduction initiatives, including headcount reductions of 180 in the third quarter. This first phase of cost reductions is expected to yield annual savings of approximately $12 million, and we have more initiatives underway. In total, our headcount is down 230 since the end of 2018. In periods of slower growth, our business continues to generate cash, and we expect to generate at least $200 million of cash from operations in 2019."

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

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