MRC Global (MRC) Stock Skyrocketing as Earnings Top Estimates

NEW YORK (TheStreet) -- Shares of MRC Global (MRC) are higher by 14.79% to $16.76 on heavy volume in mid-afternoon trading on Friday, after the energy sector products and services provider reported better than expected earnings for the 2015 first quarter.

MRC Global said net income was $29.1 million or 28 cents per diluted share. Analysts had forecast for earnings of 18 cents per share for the most recent quarter.

Last year, MRC Global's net income was $23.5 million or 23 cents per diluted share.

Sales for the quarter ended March 2015 were $1.29 billion versus the $1.21 billion analysts were anticipating.

"The first quarter results were in line with our expectations and our plan remains unchanged. We will continue to focus on generating cash, reducing debt and driving gains in market share. We generated $116 million cash flow from operations during the first quarter and reduced net debt by $105 million. We expect to generate $350 million-$450 million in cash from operations this year. While upstream activity has declined, the actions we took to reduce costs have positioned us well and our Adjusted EBITDA margins improved to 6.7% in the first quarter of 2015," company CEO Andrew Lane said in a statement.

Separately, TheStreet Ratings team rates MRC GLOBAL INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MRC GLOBAL INC (MRC) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow."

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