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Stock Analyst Update

Political Squabbles Cast a Shadow over Freddie Mac

The loan buyer hits earnings target, but growth may slow in 2000.

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Freddie Mac (FRE) reported good earnings Tuesday and remains a viable investment option, but management said political and economic pressures may have an adverse impact on the loan buyer's profits this year.

Freddie met Wall Street's operating-earnings expectations of $0.83 per share for the second quarter despite worsening economic conditions and an increase in the company's cost of funding. Earnings per share were up a healthy 12% over the year-earlier quarter, and net income growth was 14%.

Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.