Opening View: Freddie Mac, Ambac Financial Provide Post-Fed Hangover

Financials could be a little shaken today, after Freddie Mac (FRE: sentiment, chart, options) said it swung to a second-quarter loss of $821 million, or $1.63 per share, after taking $2.5 billion in provisions for credit losses. Revenue fell to $1.69 billion from $2.34 billion. Analysts had expected a loss of 38 cents per share. FRE also cut its third-quarter dividend to 5 cents per share or less from 25 cents per share.

Continuing our look at financials, bond insurer Ambac Financial Group (ABK: sentiment, chart, options) said that second-quarter net income arrived at $823.1 million, or $2.80 per share, due to mark-to-market gains on credit derivatives. Revenue for the quarter reached $1.33 billion, compared to $412.6 million a year earlier. On an adjusted basis, ABK posted a loss of $1.53 per share. Wall Street was looking for a loss of $1.19 per share.

The tech sector could have a few surprises today, as Cisco Systems (CSCO: sentiment, chart, options) reported fourth-quarter net income of $2 billion, or 33 cents per share. Revenue was $10.4 billion, up from $9.4 billion a year ago. Adjusted income was 40 cents per share, beating the consensus estimate by a penny.

Also in tech, Time Warner (TWX: sentiment, chart, options) reported second-quarter net income of $792 million, or 22 cents per share. Revenue reached $11.56 billion from the prior year's $10.98 billion. Analysts were looking for earnings of 24 cents per share. The company also affirmed its 2008 outlook, placing full-year earnings from continuing operations in a range of $1.07 to $1.11 per share. Wall Street is currently expecting a 2008 profit of $1.08 per share.

Finally, Sprint Nextel (S: sentiment, chart, options) reported a second-quarter loss of $344 million, or 12 cents per share. On an adjusted basis, earnings were 6 cents per share. Revenue fell 11% to $9.1 billion. Analysts were looking for earnings of a penny per share on revenue of $9.15 billion. Looking ahead, Sprint Nextel expects to report higher post-paid subscriber losses in the third quarter, "due to a seasonal uptick in churn," the company said.

Opening View: Freddie Mac, Ambac Financial Provide Post-Fed Hangover