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MRC Global (MRC) Stock Jumps on Raised Full-Year Guidance
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MRC Global Inc. (MRC - Free Report) boosted its guidance for full-year 2022 owing to strong performance in the first half of 2022. Following this, shares of the company jumped 8.4% in after-hours trading on Jul 7.
With robust activity across its sectors and continued growth in order intake and backlog, MRC now expects revenues of $3.3 billion in 2022, reflecting a year-over-year increase of 24%. Previously, the company had anticipated revenues to be $3.1 billion for the year.
For 2022, MRC Global expects adjusted EBITDA of $230 million, indicating a year-over-year increase of 58%. Previously, the same was expected to be $200 million. Adjusted EBITDA as a percentage of sales is predicted to improve 150 basis points to around 7% in the current year compared with the previous view of 6.5%.
MRC Global has witnessed sequential revenue growth across its four end-markets, including greater-than-expected increases in the Gas Utilities; and Downstream, Industrial and Energy Transition (“DIET”) sectors. Owing to this, the company now expects second-quarter sales to increase roughly 14% sequentially, compared with the high single-digit improvement anticipated previously.
MRC expects the adjusted EBITDA margin to be around 7.5% of sales for the second quarter. This would mark the company’s highest quarterly adjusted EBITDA margin since 2018. MRC is slated to release second-quarter results on Aug 8.
While MRC Global expects its third-quarter revenues to improve sequentially, it anticipates a decline in the fourth quarter due to seasonal softness.
Zacks Rank & Key Picks
MRC Global carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Zacks Industrial Products sector are as follows:
Greif Inc. (GEF - Free Report) sports a Zacks Rank #1 (Strong Buy). GEF has an estimated earnings growth rate of 36% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 17.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Greif pulled off a trailing four-quarter earnings surprise of 22.9%, on average. The company’s shares have gained 1% in the past three months.
Titan International flaunts a Zacks Rank #1. TWI has an estimated earnings growth rate of 165% for the current year. In the past 60 days, the Zacks Consensus Estimate for TWI’s current-year earnings has been revised upward by 43.3%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have gained 8.4% in the past three months.
RBC Bearings carries a Zacks Rank #2 (Buy). ROLL has an estimated earnings growth rate of 49.9% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7%.
RBC Bearings pulled off a trailing four-quarter earnings surprise of 3.4%, on average. The company’s shares have gained 10% in the past three months.
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MRC Global (MRC) Stock Jumps on Raised Full-Year Guidance
MRC Global Inc. (MRC - Free Report) boosted its guidance for full-year 2022 owing to strong performance in the first half of 2022. Following this, shares of the company jumped 8.4% in after-hours trading on Jul 7.
With robust activity across its sectors and continued growth in order intake and backlog, MRC now expects revenues of $3.3 billion in 2022, reflecting a year-over-year increase of 24%. Previously, the company had anticipated revenues to be $3.1 billion for the year.
For 2022, MRC Global expects adjusted EBITDA of $230 million, indicating a year-over-year increase of 58%. Previously, the same was expected to be $200 million. Adjusted EBITDA as a percentage of sales is predicted to improve 150 basis points to around 7% in the current year compared with the previous view of 6.5%.
MRC Global Inc. Price
MRC Global Inc. price | MRC Global Inc. Quote
Improved Q2 Expectations
MRC Global has witnessed sequential revenue growth across its four end-markets, including greater-than-expected increases in the Gas Utilities; and Downstream, Industrial and Energy Transition (“DIET”) sectors. Owing to this, the company now expects second-quarter sales to increase roughly 14% sequentially, compared with the high single-digit improvement anticipated previously.
MRC expects the adjusted EBITDA margin to be around 7.5% of sales for the second quarter. This would mark the company’s highest quarterly adjusted EBITDA margin since 2018. MRC is slated to release second-quarter results on Aug 8.
While MRC Global expects its third-quarter revenues to improve sequentially, it anticipates a decline in the fourth quarter due to seasonal softness.
Zacks Rank & Key Picks
MRC Global carries a Zacks Rank #3 (Hold).
Some better-ranked stocks within the broader Zacks Industrial Products sector are as follows:
Greif Inc. (GEF - Free Report) sports a Zacks Rank #1 (Strong Buy). GEF has an estimated earnings growth rate of 36% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 17.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Greif pulled off a trailing four-quarter earnings surprise of 22.9%, on average. The company’s shares have gained 1% in the past three months.
Titan International flaunts a Zacks Rank #1. TWI has an estimated earnings growth rate of 165% for the current year. In the past 60 days, the Zacks Consensus Estimate for TWI’s current-year earnings has been revised upward by 43.3%.
Titan International pulled off a trailing four-quarter earnings surprise of 56.4%, on average. The company’s shares have gained 8.4% in the past three months.
RBC Bearings carries a Zacks Rank #2 (Buy). ROLL has an estimated earnings growth rate of 49.9% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7%.
RBC Bearings pulled off a trailing four-quarter earnings surprise of 3.4%, on average. The company’s shares have gained 10% in the past three months.