Stocks moving after hours: Alcoa, Discover, Vroom
Alcoa shares fell in after hours on weaker-than-anticipated demand this year. The U.S. based aluminum producer expects between 2.5 million and 2.6 million metric tons of shipments this year. That came in short of the consensus analyst estimates to ship an average of 2.65 million tons of aluminum.
The price of the lightweight metal fell around 15% in 2022 amid declining vehicle and appliance demand, particularly in the fourth quarter of last year.
Alcoa posted sales of $2.66 billion versus estimates of $2.67 billion for its latest quarter, and a loss per share of 70 cents versus expectations of 71 cents.
Discover Financial Service sank 6% after posting higher-than-expected net charge-offs. The closely followed metric for the fourth quarter came in at $581 million versus estimates of $554.7 million. Discover anticipates a rise in net charge-offs between 3.5%-3.9% in 2023, versus expectations of 2.8%.
The bank’s earnings per share for the fourth quarter came in at $3.77 versus estimates of $3.62.
Vroom shares rose after it announced the company is laying off 275 employees, about 20% its staff, or 275 employees, as part of its measures to cut costs. The cuts exclude United Auto Credit, a lender which the used car retailer acquired in 2021.
Vroom anticipates $4 million in cash charges due to severance packages. It expects to save $27 million as a result of the job cuts.
Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre
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