Just when you thought shares of Ford and GM can’t get any lower, major brokerage Morgan Stanley “lowered its 2012 U.S. auto sales projections by about 3 percent and cut its earnings-per-share estimates for the North American auto sector due to weaker-than-expected sales in the United States and Europe,”Reuters says.
For what it’s worth, Morgan expects U.S. auto sales to be 14.4 million this year, down from its earlier projection of 14.8 million. What is more disconcerting is Morgan’s outlook on financials of U.S. makers.
The firm cut its earnings-per-share outlook for GM by more than 10 percent to $3.40 per share. That’s still above analysts’ consensus of $3.25 per share.
Morgan Stanley now estimates Ford’s annual earnings per share at $1.26, down 3.1 percent from its previous forecast of $1.30.
Europe puts a sever drain on U.S. automakers. Latin America is soft. China is still good, but taking a breather.
The Ford and GM shares were unimpressed by the dire predictions and opened mostly unchanged today. Our Grade the Analysts ranking is likewise underwhelmed: Morgan Stanley usually takes bottom position when they show up and play.