Mad Money

'This is the most overwhelming week of earnings season,' Jim Cramer says

Key Points
  • "You need to understand that this week is about one thing and one thing only: It's about earnings. First time it's been like that in a while," CNBC's Jim Cramer said.
  • "This is the most overwhelming week of earnings season, when a ridiculous number of companies report at the exact same time," the "Mad Money" host said.
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Cramer looks ahead to earning reports from Facebook, Amazon, Alphabet and Apple

CNBC's Jim Cramer on Monday gave investors his thoughts on what's to come in a jammed-pack week of corporate earnings reports.

"You need to understand that this week is about one thing and one thing only: It's about earnings. First time it's been like that in a while," the "Mad Money" host said. "This is the most overwhelming week of earnings season, when a ridiculous number of companies report at the exact same time."

Stocks traded higher on Monday and the technology sector led the way with the Nasdaq Composite posting a 1.67% gain, settling at 10,536.27 at the close. The Dow industrials index moved almost 115 points, or 0.43%, to 26,584.77 and the S&P 500 broad index climbed 0.74% to 3,239.41

Some of the biggest names in tech are set to report quarterly earnings later this week. These reports will reveal the temperature of the market, Cramer said. 

Amazon, Apple and Alphabet are some of the headliners this week and the host said he expects that they all will "disappoint."

"Is FANG still investible? Should we look elsewhere for gains? This is the week we find out," he said.

All projections are based on Factset estimates:

Tuesday: McDonald's, Pfizer, 3M, Raytheon Technologies, Starbucks, AMD

McDonald's

  • Q2 earnings release: 6:58 a.m.; conference call 8:30 am.
  • Projected EPS: 74 cents
  • Projected revenue: $3.7 billion

"I'd be surprised if it wasn't an upside surprise," Cramer said.

Pfizer

  • Q2 earnings release: 6:45 a.m.; conference call 10 a.m.
  • Projected EPS: 67 cents
  • Projected revenue: $11.58 billion

Pfizer "should have a good quarter, but we also want more color on their Covid vaccine," he said.

3M

  • Q2 earnings release: 6:30 a.m.; conference call: 9 a.m.
  • Projected EPS: $1.80
  • Projected revenue: $7.3 billion

"They need to tell a better story than last time, a story about how their safety division's on fire, their auto business has turned, and China's coming back," he said. "Sadly, I don't think you [will] get any of that."

Raytheon Technologies

  • Q2 earnings release: 6:55 a.m.; conference call: 8:30 a.m.
  • Projected EPS: 13 cents
  • Projected revenue: $13.46 billion

Raytheon will "give us a glimpse of the broader industry before Boeing reports on Wednesday," he said. "I'm concerned about aerospace because we're simply not seeing any pick-up in travel … especially now that the rest of the world seems to be getting hit with a second wave of the pandemic."

Starbucks

  • Q3 fiscal 2020 earnings release: 4:05 p.m.; conference call: 5 p.m.
  • Projected losses per share: 59 cents
  • Projected revenue: $4.06 billion

"Starbucks is now scorned as a place that can't handle traffic or lines in the age of social distancing, and that can't capitalize on the rebound in China," he said. "I think that's unfair. They're rolling out new stores that don't have seating and I bet we'll be shocked by the pick-up in sales."

AMD

  • Q2 earnings release: post-market; conference call: 5 p.m.
  • Projected EPS: 16 cents
  • Projected revenue: $1.86 billion

"I think they're beating Intel on the tech, with tons of terrific new generation processors and great video chips," he said.

Wednesday: General Electric, Boeing, PayPal, Shopify, Facebook, ServiceNow earnings

General Electric

  • Q2 earnings release: pre-market; conference call: 8 a.m.
  • Projected losses per share: 10 cents
  • Projected revenue: $17 billion

"I expect a bit of a letdown as they've got too much aerospace exposure," Cramer said.

Boeing

  • Q2 earnings release: 7:30 a.m.; conference call: 10:30 a.m.
  • Projected losses per share: $2.57
  • Projected revenue: $12.95 billion

"I think the CEO will dig himself a deeper hole on the conference call that will be difficult to climb out of. The best thing they can say is that they don't need a bailout," he said.

PayPal

  • Q2 earnings release: 4:15 p.m.; conference call: 5 p.m.
  • Projected EPS: 87 cents
  • Projected revenue: $4.99 billion

"Financial technology's so loved that these guys could deliver a so-so quarter and I still think the stock would rally," he said.

Shopify

  • Q2 earnings release: pre-market; conference call: 8:30 a.m.
  • Projected EPS: $0
  • Projected revenue: $509 million

"The only time this e-commerce enabler goes down is when shorts push it lower off the quarter, causing befuddled longs to panic. That's your buying opportunity," he said.

ServiceNow

  • Q2 earnings release: post-market; conference call: 5 p.m.
  • Projected EPS: $1.01
  • Projected revenue: $1.05 billion

"I think it can rally as long as we don't get another wholesale rotation out of the cloud stocks," he said.

Thursday: AstraZeneca, Eli Lilly, Facebook, Amazon, Apple, Alphabet

AstraZeneca

  • Q2 earnings release: 2 a.m.; conference call: 6:45 a.m.
  • Projected EPS: 46 cents
  • Projected revenue: $6.2 billion

"When it comes to the race for a vaccine, we know AstraZeneca's in the lead," Cramer said.

Eli Lilly

  • Projected EPS: $1.56 
  • Projected revenue: $5.76 billion

"We haven't really heard much about Lilly's antibody strategy, though I actually expect great things," he said, "And Covid aside, they have a habit of raising their forecast every quarter."

Facebook

  • Q2 earnings release: 4:05 p.m.; conference call: 6 p.m.
  • Projected EPS: $1.39
  • Projected revenue: $17.33 billion

"Mark Zuckerberg has a chance to explain … how he plans to create more minority-owned Instagram shops than the Small Business Administration," he said.

Amazon

  • Q2 earnings release: 4:01 p.m.; conference call: 5:30 p.m.
  • Projected EPS: $1.48
  • Projected revenue: $81.37 billion

"The problem with Amazon is that the quarter's going to be a tough act to follow because, now that most people wear masks, it isn't as frightening to shop in person," he said.

Apple

  • Q2 earnings release: 4:30 p.m.; conference call: 5 p.m.
  • Projected EPS: $2.04
  • Projected revenue: $52.12 billion

"I hope Apple sells" off, he said. "This may be your last chance to get in before 5G takes over the world."

Alphabet

  • Q2 earnings release: post-market; conference call: 4:30 p.m.
  • Projected EPS: $7.95
  • Projected revenue: $37.29 billion

"I don't even know what a good quarter from Alphabet would look like anymore, though neither does anybody else," he said.

Friday: Exxon, Chevron, Caterpillar earnings

Exxon

  • Q2 earnings release: 7:30 a.m.; conference call: 9:30 a.m.
  • Projected losses per share: 62 cents
  • Projected revenue: $38.16 billion

Chevron

  • Q2 earnings release: pre-market; conference call: 11 a.m.
  • Projected losses per share: 89 cents
  • Projected revenue: $21.87 billion

"Exxon was always king to Chevron's pawn. No longer," Cramer said. "Last week, Chevron bought Noble Energy, and now it's playing offense. I don't know what game Exxon's playing."

Caterpillar

  • Q2 earnings release: 6:30 a.m.; conference call: 8:30 a.m.
  • Projected EPS: 64 cents
  • Projected revenue: $9.33 billion

"Caterpillar reports what could be a tough quarter, but they can claim it's all uphill because China and oil have bottomed," he said.

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Jim Cramer: This is the most overwhelming week of earnings season

Disclosure: Cramer's charitable trust owns shares of Facebook, Amazon, Alphabet, Apple and Starbucks.

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