Investing Club: Lots of Club stock earnings next week — here's what Cramer hopes to hear

Published Fri, Feb 11 20221:41 PM EST

Kevin Stankiewicz @in/kevin-stankiewicz-b5593466 @kevin_stank

We're looking ahead to next week's scheduled earnings reports for a handful of Investing Club holdings, including one of our favorite oil plays right now . CNBC's Jim Cramer called in to the Morning Meeting from vacation Friday, talking Devon Energy (DVN) as well as the others set to report: Wynn Resorts (WYNN), Nvidia (NVDA), Walmart (WMT) and Cisco Systems (CSCO). All of the following EPS and sales estimates are from FactSet. We believe Devon Energy is really well positioned heading into the print, given the price of oil right now. The oil and gas exploration and production company is set to report fourth-quarter results Tuesday. Here's what Wall Street expects: Projected EPS: $1.24 Projected revenue: $3.72 billion We'll also find out what the company is paying out for its fixed-plus-variable dividend, which updates quarterly and can be to 50% of Devon's excess free cash flow. Last quarter, it jumped 71% to 84 cents per share. The Club thinks it could be even higher for Q4 based on the price of oil. We are tempted to add to our 750-share position — roughly a 1% weighting in the portfolio — before the quarter, but our investing discipline says otherwise. Cramer explained why during the Morning Meeting: "I'm so conscious that I'd like to be bigger in Devon, but we have rules in the Club, and one of the rules is that you can't just go in and violate [cost basis] without some sort of catalyst. ... If oil comes down, we will really feel like we screwed up and it's important to have that discipline. I don't have a catalyst other than the fact of a good quarter, and everybody has that. I think we have to stay the course and stay long Devon, but not increase it until it goes lower." The Club has an average cost basis of $45.49 in Devon. The stock traded above $53 per share Friday morning. Also reporting after the close Tuesday is Wynn Resorts, which is on our list of problem stocks . Here's what the Street is looking for in the casino operator's Q4 release: Projected EPS: Loss of $1.23 Projected revenue: $994 million Beyond the headline figures, the Club wants to hear what Wynn management thinks about its operations in gaming hub Macao, a Chinese special administrative region where Wynn and other firms have a significant presence. We think Covid-related travel restrictions could ease after the Beijing Winter Olympics conclude, a move that would likely to benefit Wynn's Macao business. We also liked Wynn's recently announced plans for a major resort in the United Arab Emirates , which would help geographically diversify the company's revenue streams once it opens in a few years. Here's how Cramer and the team is thinking about managing the Club's position in Wynn, which has a roughly 3.2% weighting in the portfolio: "I'm so tempted to take some off ahead of the quarter, but this is one of those stocks that effectively telegraphs itself. There's something that we don't know that is positive here. ... We do have a management team that is highly motivated to get something done because the stock has just been so terrible. So, I want to see. I have no expectations. ... I can't imagine what they can say that can make anybody happy if Macao is not doing well. I want to see why the stock is up." Nvidia's fourth-quarter results are due out after the close Wednesday. Here's what analysts expect from the semiconductor giant: Projected EPS: $1.23 Projected sales: $7.42 billion Cramer shared his broad outlook on the company: "I like Nvidia very much. It's a high performance computing now. It's very, very much about gaming. Gaming is getting bigger than I thought, which is terrific." Nvidia, which accounts for a 4.7% weighting in the Club's portfolio, was in the news earlier this week, when it officially scrapped its attempted acquisition of the U.K. chip designer Arm. As we wrote Tuesday , our investment thesis for Nvidia never was about the company buying Arm. That said, we are interested to see if management discusses any plans for the cash that was earmarked for the now-failed Arm deal during the earnings call, which is set to begin at 5:30 p.m. ET Wednesday. Cisco's fiscal second-quarter results are also scheduled to be release after the close Wednesday. Here's what analysts are expecting: Projected EPS: 81 cents Projected revenue: $12.66 billion Cisco has not been a strong performer lately, down over 13% year to date. But Cramer and the Club are hoping a strong earnings report can improve investor sentiment. Here's what Cramer had to say about the computer networking company: "Cisco would be a disappointment if they didn't do a good number. I know they have supply chain issues." The supply chain issues Cramer mentioned featured prominently in the company's most-recent quarterly report from November. CEO Chuck Robbins told Cramer on "Mad Money" shortly afterward that Cisco had the largest order backlog in company history because of supply chain complications. The Club will be looking for updated commentary from Robbins and management about improvement in its supply chain, allowing it to meet its robust demand from customers. Retail giant Walmart is slated to report before the bell Thursday. We've been trimming our Walmart holdings over the past few months, with the most recent sale coming on Jan. 27, when we sold 300 shares at roughly $137.34. Here's what the Street expects from Walmart in its Q4: Projected EPS: $1.49 Projected sales: $151.77 billion Like Cisco, Cramer said Walmart shares have been disappointing recently and explained how he's thinking going into the print: "I don't expect Walmart to do well, that's why we kept trimming it." (Jim Cramer's Charitable Trust is long DVN, WYNN, WMT, NVDA, and CSCO. You can find details on our cost basis, total shares owned, when we bought and so much more for all of the Club stocks here .) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Wynn Macau casino resort in Macau, China.

Jerome Favre | Bloomberg | Getty Images

We're looking ahead to next week's scheduled earnings reports for a handful of Investing Club holdings, including one of our favorite oil plays right now.