Here’s Jim Cramer’s advice for navigating this uncertain earnings season

Here’s Jim Cramer’s advice for navigating this uncertain earnings season

The earnings season is in full swing on Wall Street, and CNBC’s Jim Cramer said on Monday that investors would be wise to take a wait-and-see approach to stocks in companies that are reporting quarterly figures.

“In this environment it will always be fragile on the top and light on the bottom, because the bears… have the upper hand. Just remember that you should never buy this market when it’s up. It’s an idiot’s game. I want you to wait for weakness as we had [Monday] before you ever hit the trigger, “said the” Mad Money “host from the floor of the New York Stock Exchange, the show’s new broadcast home.

“If you’re thinking of buying something that is about to report, why not wait until you hear what they have to say?” Cramer continued. He pointed to IBM as a good example.

As of Monday, IBM was one of only seven shares in the Dow Jones Industrial Average with 30 shares higher so far this year. However, equities fell nearly 4% in expanded trading on Monday after the company reduced its cash forecast for 2022, even though second-quarter results hit the top and bottom lines.

“If you bought it in advance of the quarter, you rolled the dice in a casino that is not friendly to blind dice rolling,” Cramer said.

With that in mind, Cramer previewed a number of other major revenue reports planned for the rest of this week. All income and income estimates are provided by FactSet.

Tuesday: J&J, Halliburton, Lockheed Martin and Netflix

Johnson & Johnson

  • Q2 results report 6:45 am ET; telephone conference at 8:30 ET
  • Estimated EPS: $ 2.54
  • Estimated sales: $ 23.77 billion

Cramer, whose Charitable Trust owns shares in J&J, said he expects to see good numbers from the pharmaceutical giant even as the company works to separate into two different entities. He noted that J & J’s shares have lagged behind peers this year, including Bristol-Myers Squibb and Merck.

Halliburton

  • Q2 revenue drop before the clock; telephone conference at 9.00 ET
  • Estimated EPS: 45 cents
  • Estimated revenue: $ 4.7 billion

“Halliburton’s earnings are sky high, but the stock has been crushed. … I think it’s time to reconsider this, and realize that earnings can be huge for Halliburton not tomorrow, but in the years to come,” Cramer said.

Lockheed Martin

  • Q2 income statement before opening; telephone conference at 11.00 ET
  • Estimated EPS: $ 1.88
  • Estimated sales: $ 15.98 billion

Netflix

  • Q2 result message after completion; telephone conference at 18.00 ET
  • Estimated EPS: $ 2.95
  • Estimated revenue: $ 8.03 billion

Cramer said he hopes to hear more “thoughtful” earnings from management after this quarterly transcript compared to the power giant’s poor first quarter report. In particular, Cramer said investors want more information about Netflix’s recent deal with Microsoft, which is part of Netflix’s development of an ad-supported subscription level.

Wednesday: Abbott Labs and Tesla

Abbott Laboratories

  • Q2 income statement before opening; telephone conference at 9.00 ET
  • Estimated EPS: $ 1.12
  • Estimated sales: $ 10.29 billion

Tesla

  • Q2 earnings by the clock; telephone conference at 17.30 ET
  • Estimated EPS: $ 1.81
  • Estimated revenue: $ 16.52 billion

Cramer said he believes Tesla’s earnings report is the most important this week. “Estimates are everywhere. There are a large number of sales estimates and as many purchases. [CEO Elon] Musk continues to expand like crazy. … Still, if Tesla can surpass even the lowest estimates, the stock will go much higher. “

Thursday: AT&T, Freeport-McMoRan, Dow Inc., Union Pacific, DR Horton, Snap, Mattel and Boston Beer

AT&T

  • Q2 revenue drop before the clock; telephone conference at 8:30 ET
  • Estimated EPS: 61 cents
  • Estimated revenue: $ 29.53 billion

Freeport-McMoRan

  • Q2 income statement before opening; telephone conference at 10 ET
  • Estimated EPS: 64 cents
  • Estimated sales: $ 6.14 billion

Dow Inc.

  • Q2 result message at 06.00 ET; telephone conference at 08.00 ET
  • Estimated EPS: $ 2.14
  • Estimated sales: $ 15.55 billion

Cramer said that the chemical company Dow Inc., together with the copper miner Freeport-McMoRan, should provide insight into the path to economic growth.

Pacific Union

  • Q2 income report at 7:45 ET; telephone conference at 8.45 ET
  • Estimated EPS: $ 2.85
  • Estimated revenue: $ 6.13 billion

Cramer said he was concerned that rail operator Union Pacific could warn of a slowdown in operations.

DR Horton

  • Q3 result message at 06:30 ET; telephone conference at 8:30 ET
  • Estimated EPS: $ 4.49
  • Estimated sales: $ 8.81 billion

Just as with Union Pacific, Cramer said he is concerned that house builder DR Horton may warn of a decline in cancellations. “Home agreements do not end; home trust [is] big down. “High mortgage rates tend to do that,” he said.

Snap

  • Q2 earnings by the clock; telephone conference at 17.00 ET
  • Estimated EPS: loss of 20 cents
  • Estimated revenue: $ 1.14 billion

Mattel

  • Q2 result message after completion; telephone conference at 17.00 ET
  • Estimated EPS: 6 cents
  • Estimated sales: $ 1.1 billion

Boston beer

  • Q2 income statement after the bell; telephone conference at 17.00 ET
  • Estimated EPS: $ 4.61
  • Estimated income: $ 612 million

The parent of Sam Adams and Truly has been struggling lately thanks to a decline in sales of hard seltzer, and Cramer said he expects more of the same with this print. He said he prefers shares in Corona’s mother Constellation Brands, which is owned by his Charitable Trust, to Boston Beer.

Friday: American Express, Verizon, Schlumberger and Twitter

American Express

  • Q2 income report at 07.00 ET; telephone conference at 8:30 ET
  • Estimated EPS: $ 2.42
  • Estimated sales: $ 12.51 billion

Cramer said he expects spending from small businesses and consumers to help American Express report solid results.

Verizon

  • Q2 results announcement 7:30 am ET; telephone conference at 8:30 ET
  • Estimated EPS: $ 1.22
  • Estimated revenue: $ 33.73 billion

Schlumberger

  • Q2 results message 7 am ET; conference call 9:30 ET
  • Estimated EPS: 40 cents
  • Estimated sales: $ 6.28 billion

Cramer said he expects a good number from oil field service provider Schlumberger, just as he does with Halliburton.

Twitter

  • Q2 income report at 08.00 ET; no conference call scheduled
  • Estimated EPS: 15 cents
  • Estimated revenue: $ 1.33 billion

Twitter is not holding a conference call to discuss second-quarter figures, citing its “pending acquisition” of a unit affiliated with Elon Musk. The two parties are currently engaged in a legal back and forth related to the agreement.

Disclosure: Cramer’s Charitable Trust owns shares in HAL, JNJ, MSFT and STZ.

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