Nash Finch ( NAFC) was among Nasdaq's losers Friday, with shares plunging 26% after the food retailer and distributor cut its 2005 earnings outlook. The company now expects earnings of $3 to $3.25 a share, down from an earlier view of $3.70 to $3.89 a share. Analysts polled by Thomson First Call had projected earnings of $3.74 a share. "Clearly the acquisition of the Westville, Ind., and Lima, Ohio, divisions earlier in the year resulted in a lack of focus in our core business," the company said. "We have experienced serious erosion in retail and wholesales gross profit margins, based on issues that we had thought were readily resolvable. Unfortunately, the impact has been deeper than we anticipated and margins will take longer to rebound than we had thought, but these issues are fixable and we are addressing each one of them." Shares recently dropped $10.96 to $31.38. Shares of Cree ( CREE) rose 15% after the maker of light-emitting diodes posted better-than-expected fiscal first-quarter results. Cree earned $21.7 million, or 28 cents a share, on sales of $103.9 million for the quarter ended Sept. 25. Excluding an investment gain, the company would have earned 25 cents a share. Analysts anticipated earnings of 23 cents a share and sales of $102.8 million. In last year's first quarter, the company earned $24.4 million, or 32 cents a share, on sales of $96 million. For the second quarter, Cree forecast earnings of 24 cents to 27 cents a share, with sales of $106 million to $109 million. Excluding stock-options expense and other equity compensation, the company sees earnings of 27 cents to 30 cents a share. The guidance also includes costs of a half a cent related to the wind-down of Cree Microwave. Analysts expect second-quarter earnings of 24 cents a share and sales of $108.1 million. Shares were trading up $3.25 to $25.55.