NYSE$MRC

Mrc Global Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported a decrease in sales, but maintained strong gross and adjusted EBITDA margins.

MRC Global reported a decrease in sales by 12% compared to Q4 2022. Net income attributable to common stockholders was $15 million, or $0.17 per diluted share. The company expects revenue to be flat to modestly lower than 2023 levels.

  • Sales of $768 million, a decrease of 12% compared to the same quarter of 2022.
  • Net income attributable to common stockholders for the fourth quarter of 2023 was $15 million, or $0.17 per diluted share.
  • Adjusted net income attributable to common stockholders for the fourth quarter of 2023 was $20 million, or $0.23 per diluted share.
  • Adjusted EBITDA was $48 million, 6.3% of sales.

Headline financials

Total Revenue

$768M

Previous: $869M-11.6%
EPS (adj)

$0.23

Previous: $0.32-28.1%
Adjusted EBITDA

$49M

Previous: $66M-25.8%
Capital Expenditures

-$5M

Previous: $3M-266.7%
Net Income

$15M

Previous: $15M+0.0%
Operating Income

$28M

Previous: $35M-20.0%
Gross Profit

$153M

Previous: $158M-3.2%
Stock-Based Comp

$4M

Previous: $4M+0.0%

Revenue & EPS history

MRC Global · Revenue · Quarterly

$768M

Q4 2023-11.6%vs Q4 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

MRC Global · $850M total across 2 segments · Q3 2023

  • U.S. Sales
    $745M-3.0%
  • International Sales
    $105M+6.1%

Forward guidance

In 2024, the company expects revenue to be flat to modestly lower than 2023 levels and targets to generate $200 million in cash from operations.

Tailwinds

  • Expect a pick-up in business activity in the second half of the year.
  • Improving economy and lower interest rates support projects and oil and gas investments.
  • Targeting to generate $200 million in cash from operations.
  • Further improvements in working capital efficiency.
  • Expect to reduce overall SG&A expenses in 2024.

Headwinds

  • Revenue to be flat to modestly lower than 2023 levels.
  • Gas Utilities sector sales were down $61 million, or 19%, as a result of non-recurring sales, deferred activity as well as certain customers destocking.
  • PTI sector sales decreased $35 million, or 16%, due to non-recurring projects and lower customer activity.
  • Canada sales in the fourth quarter of 2023 were down $18 million, or 39%, from the same quarter in 2022 driven by the PTI sector from non-recurring projects and year end curtailment in customer spending.
  • The Gas Utilities sector experienced a $59 million, or 19%, decline from customer's destocking, seasonal declines, non-recurring projects and decreased product purchases due to higher interest rates and construction cost inflation.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 7 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+1.5%

Avg return

Earnings day

+5.7%

Avg return

5 days after

+3.8%

Avg return

30 days after

53%

29 / 55 earnings

Positive

+43.4%

Q1 2020

Best reaction

-19.2%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025
Q2 2025-6.7%-5.9%+5.2%
Q1 2025-6.0%+6.6%+4.5%
Q4 2024+2.4%+6.4%-11.6%
Q3 2024+18.4%+11.8%+13.6%
Q2 2024-3.8%-7.6%-5.2%
Q1 2024+9.4%+18.8%+8.5%
Q4 2023+8.3%+9.7%+11.9%
Q3 2023-5.3%
Q2 2023-16.7%
Q1 2023+0.3%
Q4 2022-3.1%
Q3 2022+8.0%
Q2 2022-13.1%
Q1 2022-19.2%
Q4 2021+13.7%
Q3 2021-9.3%
Q2 2021-4.3%
Q1 2021+5.3%
Q4 2020-7.0%
Q3 2020+4.0%
Q2 2020+0.3%
Q1 2020+43.4%
Q4 2019-8.2%
Q3 2019+22.0%
Q2 2019-3.4%
Q1 2019+7.7%
Q4 2018+9.2%
Q3 2018+10.0%
Q2 2018-3.0%
Q1 2018+2.2%
Q4 2017-1.2%
Q3 2017-2.7%
Q2 2017+0.1%
Q1 2017+4.0%
Q4 2016-1.8%
Q3 2016+2.0%
Q2 2016+6.7%
Q1 2016+1.1%
Q4 2015+15.0%
Q3 2015+14.6%
Q2 2015-0.8%
Q1 2015+14.2%
Q4 2014-5.8%
Q3 2014+3.7%
Q2 2014-6.0%
Q1 2014-0.2%
Q4 2013-13.7%
Q3 2013+4.7%
Q2 2013-9.9%
Q1 2013+6.7%
Q4 2012-6.0%
Q3 2012+3.1%
Q2 2012-1.4%
Q1 2011-0.2%
Q1 2012+1.6%
Q4 2009
Q4 2011
Q3 2011
Q3 2010
Q4 2010
Q2 2011
Q2 2010
Q1 2010

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