Shares of MRC Global Slump on Lower Guidance
Shares of pipe, valve, and fitting distributor MRC Global (NYSE: MRC) dropped as much as 11% in early trading and are down 8.9% as of 11:30 a.m. today. The stock drop comes on the heels of the company's announcing it is lowering guidance for the third quarter.
According to the company's press release, management is lowering its financial guidance for the third quarter. It was initially expecting third-quarter revenue to increase 2% to 4% compared to the prior quarter, but now management expects a sequential decline of 4.5% to between $930 million and $950 million. This is especially discouraging because, as management noted, the third quarter has historically been the seasonal high for sales.
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Source Fool.com
