Cramer’s Earnings Preview for Next Week
What follows is "Mad Money" host Jim Cramer's "Game Plan" for the week of Monday, April 23.
MONDAY, APRIL 23
To start, Cramer will look for earnings from ConocoPhillips, which is scheduled to report before the opening bell. The oil and gas company plans to break up, which Cramer thinks will create value for shareholders. It’s a huge play on natural gas, though, which Cramer said is a problem because nobody wants nat gas right now. So he likes Conoco’s oil and gas business, but wants to sell the refining business segment.
After the market’s close, Cramer looks forward to an earnings announcement from Netflix. Cramer wants to know if the Internet company can regain its luster and return to growth. Being as it still sells at 25 times earnings, though, he thinks it’s a very expensive stock.
Texas Instruments is also slated to deliver earnings on Monday. The Dallas-based company is reportedly a major supplier to Apple , which is scheduled to report the next morning. So Cramer thinks investors will use Texas Instruments’ results to decide how Apple might report.
TUESDAY, APRIL 24
3M , one of Cramer’s fave big cap companies, will report before the market’s open. Given its new products and strength in Asia, Cramer thinks it will report a strong quarter. If its stock takes a hit nevertheless, Cramer reminded viewers that its stock sports a 2.7 percent dividend yield and the St. Paul, Minn.-based company has raised the dividend for 54 consecutive years.
Meanwhile, AT&T will deliver its earnings results. To Cramer, AT&T just doesn’t have the growth of rival Verizon . He suspects AT&T will say it’s losing share to Verizon’s iPhone sales. Apart from that, he thinks the downside is minimal.
Panera Bread will report after the closing bell. Cramer thinks it will deliver good numbers, but wants to hear more about recent changes in management. Had there not been such a turnover, he would have been more confident going into the quarter.
All eyes will be on Apple, though, as the technology giant will report earnings after the close. Cramer hopes the Cupertino, Calif.-based company will disclose strong demand for its iPad and iPhone devices. Given the considerable hype surrounding the company, he thinks it will need to beat not just the consensus estimates, but the highest estimates of $11.80 of earnings per share and roughly $41 billion in revenues.
WEDNESDAY, APRIL 25
Before the market’s open, Cramer will watch for Boeing’s quarterly results. The aerospace industry is red hot right now, but Boeing’s stock has lagged. If the company mentions sluggish 787 sales, he thinks the stock will drop to $70 a share. But if all is well, he thinks it could go to $76 or more.
Caterpillar will also report Wednesday morning. To Cramer, construction in the U.S. seems to be picking up, but things seem just the opposite in China. Nevertheless, he thinks Caterpillar will have a good story to tell.
Wyndham Worldwide is also scheduled to report in the a.m. The casino and hotel operator continues to blow away the numbers and it probably won’t disappoint this time either, Cramer said. This is a cheap stock that will probably go higher after it reports, he added.
Cramer will look for earnings from Cliffs Natural Resources after the close. The company recently raised its dividend, which tends to signal an upside surprise is coming. There are a lot of bears in the name, though. It’s also involved in coal, which has been struggling lately. So Cramer thinks it will be a solid trade going into the quarter, but that’s about it for now.
THURSDAY, APRIL 26
Celgene , the company behind one of Cramer’s fave growth stocks, will report Thursday morning. Its stock typically goes down on the quarter and then rallies after the market realizes the company is very conservative in its forecasting. The biotech company should give more details about its pipeline, which impresses Cramer. He thinks this stock is worth considering.
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Exxon-Mobil will report Thursday, too. The oil and gas company will give a read on the natural gas space. If it says nat gas has no future beyond utilities, Cramer thinks the fuel could take another leg down.
Amazon.com will announce its results after the close. Cramer thinks CEO Jeff Bezos is spending too much. In turn, he thinks it will be hard for the Internet retailer to beat expectations.
Footwear maker Deckers will also report on Thursday. Cramer is nervous that its UGG brand has peaked, as is reflected in its stock. He called it a “total show-me story.”
Speaking of “show-me stocks,” Cramer noted Zynga is also delivering earnings on Thursday. It’s recently made many acquisitions, but has little earnings to show for it, he said. He thinks the Internet company will report a lot of downloads, but wants to know if anybody is clicking on the ads.
FRIDAY, APRIL 27
International Paper will make an earnings announcement on Friday morning. Cramer thinks it will discuss how its Temple-Inland acquisition has proved profitable.
Procter & Gamble will also report earnings Friday. Cramer likes that the company recently boosted its dividend, but wants to know if its restructuring is working. He thinks both the top line and earnings could be better. The company will probably say raw costs have peaked, though.
Finally, VF Corp will give its earnings results on Friday. The apparel maker will probably say things are going well for its North Face and Timbaland brands, Cramer said. He likes the stock, but recommends waiting for a pullback before buying.
When this story was published, Cramer's charitable trust owned Apple, Boeing and International Paper.
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