This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Alcoa, Joe's Jeans: After-Hours Trading

Stocks in this article: AA JOEZ TEL

NEW YORK ( TheStreet) -- Alcoa (AA - Get Report) shares saw heavy trading action in Tuesday's extended session after the Dow component's third-quarter earnings came in well below Wall Street's expectations.

The stock last changed hands at $9.86, down 4.3%, on volume of more than 5.1 million, according to Nasdaq.com. Year-to-date, the shares were already down more than 40%, dragged lower by weakening aluminum prices.

After the closing bell, Alcoa reported earnings from continuing operations of $172 million, or 15 cents a share, for the three months ended Sept. 30 on revenue of $6.42 billion. The average estimate of analysts polled by Thomson Reuters was for earnings of 22 cents a share in the September quarter on revenue of $6.24 billion.



Expectations were pretty low for Alcoa headed into the report but this miss is still much deeper than bears anticipated as Europe, caught up in worries about sovereign debt contagion, was a big drag on results. Alcoa CEO and Chairman Klaus Kleinfeld kept an overall demand outlook for the year intact, however, and didn't back an ambitious long-term view either.

"We continue to forecast a growth rate of 12 percent for 2011, with a slower pace in the second half of the year, and reaffirm our long-term forecast for a doubling of aluminum demand by 2020," Kleinfeld said. "Alcoa is a confident company in a nervous world. We are well prepared for whatever lies ahead, with more cash on hand, lower debt and continued focus on profitable growth."

Prior to the pullback in late trades, Alcoa's forward price-to-earnings multiple sat at 8.6X, below that of the S&P 500 at around 10.8X.

Joe's Jeans

Going from a Dow component to a micro-cap, another stock active late Tuesday was Joe's Jeans (JOEZ - Get Report), which saw its shares tumble more than 20% in extended trades after the Los Angeles clothing company posted a 5% year-over-year decline in sales in its fiscal third quarter.

The stock dropped to 55 cents, losing 14 cents, on volume of roughly 45,000, according to Nasdaq.com.

The company said it swung to a third-quarter loss of $2 million, or 3 cents a share, from a profit of $558,000, or a penny per share, in the same period a year earlier. Gross margins fell to 40% from 46% year-over-year, in part because of a $1.6 million writedown the value of certain jean leggings, non-denim pants and aged collection inventory.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs