Never, ever judge a quarter simply based on the headline numbers. This kind of thinking can lead you to make some terrible mistakes.
"Case in point, Urban Outfitters, " said Jim Cramer.
After earnings sellers took the stock down well over 5% - spooked by what they thought were weaker than expected earnings.
For the third quarter Urban Outfitters reported earnings of $0.40 per share. Analysts, on average, polled by Thomson Reuters had expected a profit of $0.41 per share. Read More: Urban Outfitters - Results Miss Expectations
Also, revenues were only in-line and the comps—Wall Street speak for comparable or same store sales—were up just one percent across all of Urban's brands.
"Those were the easily digestible headline numbers, and they seemed pretty darned lousy, which is why investors sold the stock, sending it down more than 10% in after hours trading at one point," explained Cramer.
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However the Mad Money host says the sellers jumped the gun.
"If they'd bothered to do a little more digging, or even better, if they'd waited for the conference call, they would have realized that this was actually a fabulous quarter."
"Sellers saw that store comps were down 1% across the board and decided the quarter was a debacle," explained Cramer .