What: Shares of specialty metals maker Allegheny Technologies Incorporated (NYSE:ATI) dropped 14% on Tuesday after third-quarter revenue missed expectations.

So what: Management said the company lost $144.6 million in the quarter, or $1.35 per share. Although adjusted for one-time items, the loss was just $0.29 per share, a penny ahead of expectations.  

What investors were disappointed in was revenue of $832.7 million, well short of the $964.1 million analysts expected. Worse yet, management said, "At this point we see no significant improvement in our major end markets until 2016."

Now what: Allegheny is trying to cut costs as fast as possible, but the deterioration in end markets is happening faster than anyone expected. Oil and gas demand for high-performance materials and components was down 34% sequentially, and flat-rolled product demand was down 60%. Mining is also struggling as commodity prices plunge.

I don't see any upside here, and with losses likely well into 2016, this is a stock I would watch from the sidelines for signs of improvement before jumping in.