Why MRC Global's Shares Dropped

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What: Shares of industrial supplier MRC Global (NYSE: MRC  ) fell as much as 12%, after reporting earnings.

So what: Revenue was flat in the fourth quarter, at $1.3 billion, and net income fell from a $3.6 million profit to a $6.4 million loss, or $0.6 per share. On an adjusted basis, which takes out one-time items, the company said it made a $0.55 profit, which beat expectations by $0.08.  

Now what: The fourth quarter wasn't all that bad, but the company said it expects earnings per share of $2.10 next year, and Wall Street set its sights on $2.49. That's a big difference, and that's what investors are looking at today. I'm not seeing enough from guidance or growth to jump in today, but look for improving earnings in coming quarters for a buying signal.

Interested in more info on MRC Global? Add it to your watchlist by clicking here.

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Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

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Related Tickers

10/9/2015 1:47 PM
MRC $13.16 Down -0.08 -0.60%
MRC Global CAPS Rating: *****