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.