Shares of Western Alliance Bancorporation plunged 5.24% in after-hours trading on Wednesday after the bank holding company reported weaker-than-expected earnings for the third quarter of 2024.

Western Alliance said it earned an adjusted $1.80 per share for the quarter, falling short of the $1.89 per share that analysts had anticipated. The earnings miss disappointed investors and triggered a sell-off in the company's stock.

Missing Wall Street's profit forecasts is often severely punished by traders. Companies that fail to meet earnings expectations are seen as facing challenges or underperforming, raising concerns about their outlook and future growth prospects.