Fannie's Shares Slide on Weaker Outlook

After cutting its forecast for core earnings per share growth from about 10% this year to the "mid-single-digit range," Fannie Mae's share price fell by $2.68, or 3.61%, in heavy trading on Wednesday.Shares of Fannie Mae closed at $71.60 after the company released its earnings and revised its outlook, down from $74.28 one day earlier. In a conference call with analysts, Fannie Mae chief financial officer Timothy Howard declined to provide estimates for 2005 earnings, except to say that Fannie Mae expects earnings growth to be "equal to or slightly higher than" growth in its underlying mortgage market. Trading volume, at 6.8 million shares, was almost twice the average daily volume. The company's 52-week high is $80.82, and its 52-week low is $60.11.