NEW YORK (TheStreet) -- Shares of National Oilwell Varco (NOV - Get Report) fell 3.66% to $54.33 in afternoon trading Tuesday after the company cautioned investors about upcoming weakness in 2015 tied to the decline in oil prices.
"Looking into 2015 we face a very challenging market," said CEO Clay Williams in the company's fourth-quarter and full-year earnings report released before the market open. "Our customers are sharply reducing their oilfield activity and expenditures."
The backlog for National Oilwell Varco's rig systems, its largest division, plunged 13% year-over-year and 17% sequentially to $12.5 billion.
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National Oilwell Varco reported adjusted earnings of $1.69 a share, which beat the consensus estimate of $1.60 a share from Zacks. Revenue increased 7.7% year-over-year to $5.71 billion, barely shy of the Zacks expectation of $5.72 billion.
More than 10.1 million shares had changed hands as of 1:14 p.m., compared to the daily average volume of 5,401,570.
Separately, TheStreet Ratings team rates NATIONAL OILWELL VARCO INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATIONAL OILWELL VARCO INC (NOV) 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, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and poor profit margins."
- You can view the full analysis from the report here: NOV Ratings Report