TKer by Sam Ro

Share this post

Three things to remember as earnings expectations get slashed 🪓

www.tker.co

Three things to remember as earnings expectations get slashed 🪓

July's epic stock market rally is telling 📈

Sam Ro, CFA
Jul 30, 2022
6
Share this post

Three things to remember as earnings expectations get slashed 🪓

www.tker.co
(Source: FactSet)

Analysts’ expectations for earnings are finally coming down in a significant way.

Estimates for S&P 500 earnings in 2022 now stand at $227.77 per share as of July 28, according to FactSet. This is down 0.8% from the $229.63 per share estimate as of June 30.

For 2023, analysts expect EPS of $245.61, down 2.0% from the $250.59 estimate as of June 30.

It seemed inevitable that analysts would cut their lofty estimates with the outlook for the economy only deteriorating. With Q2 earnings season now in full swing, analysts also have more information, much of which has been gloomy, to work off of as they update their financial models for the companies they cover. (Read more about equity strategists’ concerns in the June 23 TKer newsletter.)

That said, there are three high-level things worth noting about these updated estimates.

Keep reading with a 7-day free trial

Subscribe to TKer by Sam Ro to keep reading this post and get 7 days of free access to the full post archives.

Already a paid subscriber? Sign in
Previous
Next
© 2023 Samuel Ro
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing