NEW YORK (TheStreet) -- National Oilwell Varco (NOV - Get Report) stock is down by 9% to $27.91 on heavy trading volume on Wednesday afternoon, 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 company reported lower-than-expected earnings and revenue results.
The company paid a pre-tax goodwill charge of $1.6 billion and $139 million for restructuring costs, National Oilwell said.
Due to declining commodity prices, the company is focused on reducing costs, CEO Clay Williams said in a statement.
"This 'lower-for-longer' market decline will provide the foundation for an eventual recovery, as oil depletion marches onward and demand continues to grow," CEO Clay Williams said in a statement. "We nevertheless recognize that the timing of the recovery remains uncertain and that we face additional headwinds in the year ahead."
So far today, 22.30 million shares of National-Oilwell have traded, well above the company's 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