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

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

Earnings season is in full swing on Wall Street, and CNBC’s Jim Cramer said Monday investors would be wise to take a wait-and-see stance on stocks of companies about to release earnings results.

“In this environment, it will always be fragile on the upside and easy on the downside because the bears … have the upper hand. Just remember that you should never buy this market when it is going up. This is a fool’s game. I want you to wait for weakness like we had [Monday] before you ever pull the trigger,” said the “Mad Money” host from the floor of the New York Stock Exchange, the show’s new home station.

“If you’re thinking of buying something that’s about to be released, why not wait to hear what they have to say?” Cramer continued. He cited IBM as a prime example.

As of Monday’s close, IBM was one of just seven stocks in the Dow Jones Industrial Average with 30 stocks higher year to date. However, shares fell nearly 4% in extended trading on Monday after the company reduced its liquidity forecast for 2022, despite second-quarter results beating both the top and bottom range.

“If you bought it before the quarter, you were playing dice at a casino that doesn’t condone blind dice,” Cramer said.

With that in mind, Cramer has previewed a number of other key earnings reports scheduled for the rest of this week. All profit and sales estimates are provided by FactSet.

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

Johnson&Johnson

  • Q2 Earnings Release 6:45am ET; Conference call at 8:30 a.m. ET
  • Estimated earnings per share: $2.54
  • Estimated Revenue: $23.77 billion

Cramer, whose Charitable Trust owns shares of J&J, said he expects good numbers from the pharma giant even as the company works to split into two separate entities. He noted that J&J stock has underperformed its peers this year, including Bristol-Myers Squibb and Merck.

Halliburton

  • Q2 earnings release ahead of the bell; Conference call at 9 p.m. ET
  • Estimated earnings per share: 45 cents
  • Estimated sales: $4.7 billion

“Halliburton earnings soar, but stocks have been crushed. … I think it’s time to reevaluate this and recognize that the gains for Halliburton could be huge not tomorrow but in the years to come,” Cramer said.

Lockheed Martin

  • Q2 earnings release ahead of open; Conference call at 11 a.m. ET
  • Estimated earnings per share: $1.88
  • Estimated Revenue: $15.98 billion

Netflix

  • Q2 earnings release after market close; Conference call at 6:00 p.m. ET
  • Estimated earnings per share: $2.95
  • Estimated Revenue: $8.03 billion

Cramer said he hopes to hear a “more thoughtful” earnings call from management after that quarterly push compared to the streaming giant’s poor first-quarter report. Specifically, 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 tier.

Wednesday: Abbott Labs and Tesla

Abbott Laboratories

  • Q2 earnings release ahead of open; Conference call at 9 p.m. ET
  • Estimated earnings per share: $1.12
  • Estimated Revenue: $10.29 billion

Tesla

  • Q2 profit after the bell; Conference call at 5:30 p.m. ET
  • Estimated earnings per share: $1.81
  • Estimated Revenue: $16.52 billion

Cramer said he believes Tesla’s earnings report is the most important one this week. “The estimates are everywhere. There are a large number of sales reviews and just as many purchases. [CEO Elon] Musk is still expanding like crazy. … Still, if Tesla can beat 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 earnings release ahead of the bell; Conference call at 8:30 a.m. ET
  • Estimated earnings per share: 61 cents
  • Estimated Revenue: $29.53 billion

Freeport-McMoRan

  • Q2 earnings release ahead of open; Conference call at 10 a.m. ET
  • Estimated earnings per share: 64 cents
  • Estimated Revenue: $6.14 billion

dow inc

  • Q2 Earnings Release at 6:00am ET; Conference call at 8 p.m. ET
  • Estimated earnings per share: $2.14
  • Estimated Revenue: $15.55 billion

Cramer said chemicals company Dow Inc. along with copper miner Freeport-McMoRan should provide insight into the trajectory of economic growth.

Union Pacific

  • Q2 earnings release at 7:45am ET; Conference call at 8:45 a.m. ET
  • Estimated earnings per share: $2.85
  • Estimated Revenue: $6.13 billion

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

DR Horton

  • Q3 earnings release at 6:30am ET; Conference call at 8:30 a.m. ET
  • Estimated earnings per share: $4.49
  • Estimated Revenue: $8.81 billion

As with Union Pacific, Cramer said he was concerned homebuilder DR Horton could warn of a slowdown in cancellations. “Real estate deals are not completed; confidence in one’s homeland [is] huge below. Rising mortgage rates tend to do that,” he said.

snap

  • Q2 profit after the bell; Conference call at 5:00 p.m. ET
  • Projected earnings per share: loss of 20 cents
  • Estimated revenue: $1.14 billion

mattel

  • Q2 earnings release after market close; Conference call at 5:00 p.m. ET
  • Estimated earnings per share: 6 cents
  • Estimated sales: $1.1 billion

Boston beer

  • Q2 earnings release after the bell; Conference call at 5:00 p.m. ET
  • Estimated earnings per share: $4.61
  • Estimated Revenue: $612 million

The parent of Sam Adams and Truly has been struggling lately due to a slowdown in Hard Selters sales and Cramer said he expects more of it with that pressure. He said he prefers shares in Corona parent company Constellation Brands, which his Charitable Trust owns, to Boston Beer.

Friday: American Express, Verizon, Schlumberger and Twitter

American Express

  • Q2 Earnings Release at 7:00am ET; Conference call at 8:30 a.m. ET
  • Estimated earnings per share: $2.42
  • Estimated Revenue: $12.51 billion

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

Verizon

  • Q2 Earnings Release 7:30am ET; Conference call at 8:30 a.m. ET
  • Estimated earnings per share: $1.22
  • Estimated Revenue: $33.73 billion

Schlumberger

  • Q2 Earnings Release at 7:00am ET; Conference call 9:30 a.m. ET
  • Estimated earnings per share: 40 cents
  • Estimated Revenue: $6.28 billion

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

Twitter

  • Q2 Earnings Release at 8:00am ET; no conference call planned
  • Estimated earnings per share: 15 cents
  • Estimated revenue: $1.33 billion

Twitter isn’t holding a conference call to discuss second-quarter results, citing the “pending acquisition” by an Elon Musk-affiliated company. The two parties are currently engaged in a legal back-and-forth in relation to the deal.

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

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