It has been about a month since the last earnings report for MRC Global (MRC). Shares have lost about 2.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is MRC due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

MRC Global’s Q3 Earnings Surpass Estimates, Revenues Down Y/Y

MRC Global reported third-quarter 2024 adjusted earnings 22 cents per share, which beat the Zacks Consensus Estimate of 18 cents. However, the bottom line declined 31.3% year over year.

Total revenues of $797 million matched the consensus estimate. The top line decreased 10.3% year over year due to lower volume of sales in the Gas Utilities, Downstream, Industrial and Energy Transition (DIET) and Production & Transmission Infrastructure (PTI) sectors.

Revenues by Product Line

Based on MRC’s product line, revenues from carbon pipe, fittings and flanges were down 27.4% year over year to $204 million. Revenues from valves, automation, measurement and instrumentation were down 6.9% year over year to $285 million.

Gas product revenues increased 1.6% year over year to $194 million. Sales of general products fell 14.3% to $60 million. Sales of stainless steel, alloy pipe and fittings increased 35% to $54 million.

Revenues by Sector

Effective second-quarter 2023, MRC combined its Upstream Production and Midstream Pipeline into one sector, which is currently the PTI sector.

Based on the sectors served, revenues from Gas Utilities decreased 6% year over year to $295 million, while DIET sales inched up 11% to $248 million. Sales from the PTI sector decreased 14% year over year to $254 million.

MRC Global’s Revenues by Segment

Sales generated from the U.S. segment (representing 80.8% of revenues) totaled $644 million, down 14% year over year. The downtick was due to reduced demand in the Gas Utilities, DIET and PTI sectors.

Revenues from the Canada segment (3.3%) fell 32% year over year to $26 million due to weakness in the PTI sector.

Sales from the International segment (15.9%) grew 21% year over year to $127 million, driven by higher revenues from the PTI and DIET sectors.

Margin Profile

MRC Global’s cost of sales declined 9.7% year over year to $637 million. The adjusted gross profit was down 12.3% year over year to $166 million. The adjusted gross margin was 20.8% compared with 21.3% in the year-ago period.

Selling, general and administrative expenses were down 2.4% year over year to $123 million. Adjusted EBITDA decreased 71.8% year over year to $48 million.