Profit Estimates Cut for Goldman Sachs, Morgan Stanley

Amid the sharp decline in financials Thursday, analysts at Meredith Whitney Advisory Group cut profit estimates for the beleaguered financial companies for the fourth quarter and beyond. The estimate for Goldman Sachs (NYSE:GS) was reduced to $6 per share from a previous estimate of $6.38, a 6% drop that was still higher than the average of $5.59 predicted by other analysts. The earnings estimate for 2009 was reduced to $19.57 from a previous estimate of $19.95; for 2010 the estimate fell to $16.75 from $21.73. Goldman Sachs fell 2.32% in trading Thursday as of 3:45 pm EST.

The estimates for Morgan Stanley (NYSE:MS)were similarly decreased, with a 2010 estimate of $2.60 from a previous $2.63. While the decline was not as precipitous as that of Goldman Sachs, it still marks further deterioration in investor confidence in the financial services company. Morgan Stanley fell 4% in trading as of 3:45 pm EST.