Business and Capital Market Analysis !!!

Friday, Freddie Mac (FRE: News ) reported a third-quarter net loss of $25.30 billion or $19.44 per share, significantly wider than net loss of $1.24 billion or $2.07 per share in the previous year.

Third-quarter results were impacted primarily by a non-cash charge of $14.3 billion related to the establishment of a partial valuation allowance against the company's deferred tax assets, $9.1 billion in security impairments on available-for-sale securities and $6.0 billion in credit-related expenses.

On average, six analysts polled by First Call/Thomson financial expected a loss of $0.89 per share for the quarter. Analysts' estimates typically exclude special items.

The company recorded negative revenues of $9.44 billion in the quarter, compared to last year's revenues of $878 million. Analysts expected revenues of $1.44 billion.

Net interest income for the third quarter of 2008 was $1.8 billion, up from $761 million a year ago.

Credit-related expenses, consisting of provision for credit losses and REO operations expense, were $6.0 billion for the quarter, compared to $1.4 billion for the third quarter of 2007.


Source :
1. Freddie Mac posts $25.3 bln loss in Q3 - Quick Facts, 11/14/2008 7:59 AM ET.