Why MRC Global Shares Dropped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of distributor MRC Global fell as much as 15% today after the company reported earnings.
So what: Revenue fell 11% from a year ago to $1.27 billion and adjusted earnings per share rose four cents to $0.43. Earnings beat estimates by four cents but revenue fell short of the $1.30 billion estimate and that's been the focus for investors today.
Now what: The quarter was mixed but management did lower its outlook for the full year, which was the biggest concern for investors. It now expects revenue of $5.10 billion-$5.30 billion and earnings of $1.65-$1.85 per share, all sharp reductions from previous guidance. I don't think the stock is worth buying right now given the deterioration in earnings and the weak outlook for the future.
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The article Why MRC Global Shares Dropped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.