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.