The stock of Western Alliance Bancorp (WAL), a regional lender, experienced a significant decline of 8.94% on October 18, 2024, closing at $86.89 per share. This plummet can be attributed to the company's disappointing third-quarter earnings report, which fell short of analysts' expectations.
Western Alliance reported an adjusted profit of $1.80 per share for the third quarter, missing the estimated $1.89 per share projected by analysts. Additionally, the company's non-interest expenses surged to $537.4 million, a substantial increase from $426.2 million in the previous quarter.
While Western Alliance expects its fourth-quarter earnings to benefit from a nearly 25% sequential decline in rate-related deposit costs, the disappointing third-quarter results appeared to have weighed heavily on investor sentiment. Analysts noted that the bar was set high for the company, given its recent performance, and the earnings miss triggered a sell-off in the stock.
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