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Cramer’s week ahead: Wait before trading on company earnings

Cramer’s week ahead: Wait before trading on company earnings

CNBC’s Jim Cramer on Friday warned investors not to make trading decisions fresh off a company’s earnings report.

Stocks made a comeback on Friday after falling initially on quarterly earnings reports and recession warnings from major banks. All three major indexes ended the week up, as investors digested a slate of earnings reports and economic data that suggested inflation is cooling. 

Cramer, who earlier this week offered investors a set of guidelines for earnings season, called Friday’s trading session an example of why investors should be disciplined with their portfolios.

“Every quarter I make the same argument about how you should wait and do more work before you pull the trigger, but a lot of people remain unconvinced,” he said.

He also went over next week’s slate of quarterly reports. All estimates for earnings, revenue and economic data are courtesy of FactSet.

Tuesday: Goldman Sachs, Morgan Stanley, United Airlines

Goldman Sachs

  • Q4 2022 earnings release at 7:30 a.m. ET; conference call at 9:30 a.m. ET
  • Projected EPS: $5.56
  • Projected revenue: $10.76 billion

The company’s stock could soar higher if the earnings report beats expectations, he said.

Morgan Stanley

  • Q4 2022 earnings release at 7:30 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $1.29
  • Projected revenue: $12.54 billion

Cramer said he expects a “terrific” report from the bank.

United Airlines

  • Q4 2022 earnings release at 4:30 p.m. ET; conference call on Wednesday at 10:30 a.m. ET
  • Projected EPS: $2.11
  • Projected revenue: $12.23 billion

The company will put up great numbers, since consumers are still spending on travel, he predicted.

Wednesday: J.B. Hunt Transport, Alcoa

J.B. Hunt Transport

  • Q4 2022 earnings release before the bell; conference call at 9 a.m. ET
  • Projected EPS: $2.45
  • Projected revenue: $3.83 billion

Cramer said he’ll be watching for any sign that there’s a slowdown in commerce.

Alcoa

  • Q4 2022 earnings release at 4:10 p.m. ET; conference call at 5 p.m. ET
  • Projected loss: 69 cents per share
  • Projected revenue: $2.65 billion

The metals “have become insane stock growers. … The aluminum company knows if the metals move is merely a squeeze or the real deal with actual demand,” he said.

Thursday: Procter & Gamble, Netflix

Procter & Gamble

  • Q2 2023 earnings release at 6:55 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $1.58
  • Projected revenue: $20.70 billion

He said he expects the company to report a solid quarter as raw costs come down and foreign exchange headwinds abated.

Netflix

  • Q4 2022 earnings release at 4 p.m. ET; conference call at 6 p.m. ET
  • Projected EPS: 58 cents
  • Projected revenue: $7.84 billion

“I think Netflix could be one of the strongest stories out there,” he said.

Friday: SLB

  • Q4 2022 earnings release at 7 a.m. ET; conference call at 9:30 a.m. ET
  • Projected EPS: 68 cents
  • Projected revenue: $7.78 billion

“SLB will tell us where the new finds are. They will play with an open hand. I bet you they give you a little update on Russia, too,” he said.

Disclaimer: Cramer’s Charitable Trust owns shares of Morgan Stanley and Procter & Gamble.

Cramer's game plan for the trading week of Jan. 16

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[souce cnbc]

Written by Susan Bellini