New-pssesion not working - unable to connect to remote host?

Hello guys and gals,

I been runing into issue with powershell and that is, i am unable to create remote powershell session using new-pssesion cmdlet. 

The client and server are both Win Server 2012 R2 and they are joined on the domain. I have verified that winrm service is running and i have run the Enable-psremoting. 

Some test that i have done is telneting from client to server on port 5985 which completes successfully. I have also done 

I have also run Test-NetConnection -ComputerName SERVERHOSTNAME -Port 5985 which i believe performs the same check as telnet and here is the output:

Client side run command output:

PS C:\Users\nkekic> Test-NetConnection -ComputerName hostXYZ  -Port 5985


ComputerName           : HOSTXYZ
RemoteAddress          : 10.30.11.19
RemotePort             : 5985
InterfaceAlias         : Ethernet
SourceAddress          : 10.30.11.10
PingSucceeded          : True
PingReplyDetails (RTT) : 7 ms
TcpTestSucceeded       : True

When i run new-pssesion, from client to server this is what i get:

New-PSSession -ComputerName HOSTXYZ -Credential dom\user
New-PSSession : [CLINETHOST] Connecting to remote server HOSTXYZ failed with the following error message : WinRM cannot complete the operation. Verify that the specified computer name is
valid, that the computer is accessible over the network, and that a firewall exception for the WinRM service is enabled and allows access from this computer. By default, the WinRM firewall exception
for public profiles limits access to remote computers within the same local subnet. For more information, see the about_Remote_Troubleshooting Help topic.
At line:1 char:1+ New-PSSession -ComputerName HOSTXYZ -Credential dom\user+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~+ CategoryInfo          : OpenError: (System.Manageme....RemoteRunspace:RemoteRunspace) [New-PSSession], PSRemotingTransportException+ FullyQualifiedErrorId : WinRMOperationTimeout,PSSessionOpenFailed

I have verified network connectivity, i know that the two servers can ping eachother, client can connect to server on port 5985. Winrm servers are running. I have taken out the real hostnames and IPs from above powershell output, due to security but other then that the output is the same. I have disabled the windows firewall temporary on both client and server to rule that out.

I am lost at this point guys, any ideas i can try? 

Thanks
Nermin