Mad Money

Cramer: 4 Earnings to Watch Tuesday


In what's shaping up to be another heavy week of corporate earnings, "Mad Money" host Jim Cramer plans to monitor four reports in particular on Tuesday.

To start, Cramer will take note of Biogen Idec’s earnings conference call, which is scheduled for 8 a.m. ET. The Weston, Mass.-based company makes therapies for the treatment of neurodegenerative diseases, hemophilia and autoimmune disorders. To Cramer, Biogen Idec is “one of the best biotechs around.” Needless to say, he is optimistic about its quarterly results.

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Engine maker Cummins will host its earnings conference call at 10 a.m. ET. To Cramer, the trucking industry is in a “powerful, long-term bull market.” Rivals Navistar International and Caterpillar , however, have only offered bearish inputs. So Cummins might not be a good buy ahead of the quarter, Cramer said reluctantly. He recommends taking profits going into Cummins’ results.

Emerson Electric has scheduled an earnings conference call for 2 p.m. ET. From its headquarters in St. Louis, it operates as a diversified technology company worldwide. From Eaton to Honeywell International and 3M , Cramer pointed out that many companies in the industrial goods sector have been doing well lately. Emerson, on the other hand, has been reporting disappointing numbers lately. So Cramer recommends taking profits ahead of the quarter.

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Cramer said he’d recommend investors take profits ahead of Chesapeake Energy’s earnings, too, but few investors have any profits left. Chesapeake’s stock fell sharply after a Reuters investigation last week showed CEO Aubrey McClendon has borrowed as much as $1.1 billion in the last three years to fund the costs of well stakes granted to him by Chesapeake. Most of the loans were made by EIG Global Energy Partners, an investment management firm that has invested $2.5 billion in Chesapeake along with other investors.

“We're going to need to hear some real explanations for what's going on at this company and while many people have been saying that McClendon may have to step down, I think that's highly unlikely because Aubrey is the company,” Cramer said. “Chesapeake needs money to keep its drilling going, but I don't know who's going to give it to him. They may have to announce a fire sale of assets.”

—Read on for Cramer's Earnings-Loaded "Game Plan" for the remainder of the week

—Reuters contributed to this report

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