NEW YORK (TheStreet) -- Shares of MRC Global (MRC) were gaining 14.4% to $14.50 with heavy trading volume on Friday after the pipe, valve, and fittings distributor beat analysts' estimates for earnings in the third quarter.
After the market closed on Thursday, MRC reported earnings of 10 cents a share for the third quarter, above analysts' estimates of 4 cents a share for the quarter. Revenue fell 34% year over year to $1.07 billion for the quarter, compared to analysts' estimates of $1.08 billion.
"The third quarter results reflect the continued decline in spending by our customers in response to the current oil and gas commodity price environment," Chairman, President, and CEO Andrew R. Lane said in a statement. "I'm pleased with our performance in this difficult market. We are focused on what we can control: winning and retaining customers, controlling costs and strengthening our balance sheet."
MRC also announced that its board of directors authorized a share repurchase plan of up to $100 million. The buyback plan is scheduled to expire on December 31, 2017.
About 6 million shares of MRC Global were traded by 3:46 p.m. Friday, above the company's average trading volume of about 2.3 million shares a day.
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 largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and disappointing return on equity.
You can view the full analysis from the report here: MRC