GO
Loading...

Cramer: These results changed Street’s view

(Click for video linked to a searchable transcript of this Mad Money segment)

Sometimes a company will report a quarter that's so revealing it changes Wall Street's views.

That may be the case with Harman, the maker of high-end speakers and dashboard systems. After the latest results came out, Wall Street all but stood and applauded.

Excluding special items Harman earned 95 cents per share with revenue rising 17% to $1.17 billoin. Analysts on average had expected earnings of 86 cents per share on revenue of $1.11 billion.

Alone, those numbers might not seem worthy of a standing ovation, but dig down and you'll find more.

Getty Images

"Harman racked up $1.6 billion worth of new orders in the quarter, with a backlog of business that's worth more than $20 billion," Cramer added.

However, of all the metrics, the Street was, perhaps, most enthusiastic about the following: sales jumped 14 percent to $640 million in the company's biggest business - infotainment. The unit provides integrated navigation, entertainment and communication systems to luxury carmakers.

"This is a big deal," Cramer explained. "Harman is practically married to the automobile market," Cramer said. And Harman does a significant amount of business with Europe.

German carmakers alone accounted for 34 percent of the Harman's revenue for the year ended June, with rest of Europe bringing in another 19 percent.

The results suggest that Europe is getting better. That's a major development for Wall Street. Europe is a major engine of the global economy and any improvement, even if it's just incremental, could easily move the market.

----------------------------------------------------
Read More from Mad Money with Jim Cramer
Profit from the predictable pattern
Turbocharged growth stock?
Healthcare.gov: What went wrong?
----------------------------------------------------

"I believe Harman earnings are yet another data point that confirms that the turn in Europe's economy is real," Cramer added.

Evidently Wall Street feels the same. Shares of Harman advanced more than 15% on Thursday after the company put out its results.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Symbol
Price
 
Change
%Change
HAR
---

Featured

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.