WaMu Cuts EPS Guidance

Washington Mutual has lowered its earnings guidance for this year and next in light of projected lower mortgage loan volume, the company said Tuesday morning.The company said it now expects 2003 earnings per share in the range of $4.15 to $4.25, down from a previous estimate of $4.33 and a Thomson First Call analysts' consensus estimate of $4.42. WaMu said it expects 2004 EPS to be in a range of $4.30 to $4.80, compared with previous guidance of $4.70 to $4.80. The revised guidance rattled stocks across the mortgage market Tuesday morning, with WaMu's stock falling about 8% in value by 1 p.m. WaMu also cited "increasingly competitive pricing" as a factor in the decision to reduce earnings guidance. WaMu chairman and chief executive officer Kerry Killinger said WaMu is "taking steps to substantially reduce operating costs" in response to the changing market conditions.