NEW YORK (TheStreet) -- National Oilwell Varco (NOV - Get Report) stock is down by 14.41% to $26.25 on heavy trading volume on Wednesday, after the company reported its 2015 fourth quarter earnings results today.
Before the market open on Wednesday, the Houston-based oil and gas drilling equipment provider reported adjusted earnings of 40 cents per share, lower than analysts' estimates for earnings of 44 cents per share.
Revenue dropped by 52% year-over-year to $2.72 billion, while analysts were expecting revenue of $3.03 billion.
Due to declining commodity prices, the company is focused on reducing costs, CEO Clay Williams said in a statement.
"Tumbling oil prices brought capital austerity and sharply lower oilfield activity, which is intensifying as we enter 2016," Williams said. "Nevertheless, our consolidated revenue outperformed the decline in global rig count, and our cost reductions and operational efficiencies enabled solid cash generation."
So far today, 9.03 million shares of National-Oilwell have traded, versus its 30-day average of 6.34 million shares.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: NOVNOV data by YCharts