What happened

Shares of MRC Global (MRC -1.08%) had plunged more than 15% by 1 p.m. ET on Tuesday. Weighing on the oil stock were its first-quarter results, which came amid a sell-off in the oil market. 

So what

MRC Global tallied $742 million of sales during the first quarter, 8% above last quarter and 22% higher than the year-ago period. Sales were also above the analysts' consensus estimate of $717 million. Earnings also exceeded expectations, with MRC reporting $0.17 per share compared to a $0.15-per-share consensus estimate. 

Oil pumps with a price chart in the background.

Image source: Getty Images.

The company also raised its guidance for the full year. It now sees sales coming in at $3.1 billion. That's an improvement from its initial forecast of $3 billion and slightly ahead of the $3.03 billion consensus estimate. The company noted that it expects revenue in all four business segments to increase by double-digit percentages this year. 

Normally, a beat-and-raise quarter would give the stock fuel to rally. However, oil prices took another tumble today. The U.S. oil benchmark West Texas Intermediate fell more than 3% to below $100 a barrel. That's due to continued demand concerns in China as it battles another pandemic wave. Lower crude prices and demand could impact demand for the products MRC Global distributes, which is weighing on its stock price. 

Now what

The market is resetting its expectations these days. Because of that, any hint of potential troubles is sending stocks lower. In MRC Global's case, its shares had rallied more than 75% on the year before cooling off recently along with crude prices. That cool-down phase could continue if crude keeps heading lower. However, if the current concerns fade and crude prices rally, MRC Global stock could join that rebound.