Cramer’s week ahead: ‘Be on your toes’ this earnings period

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Cramer's week ahead: Be 'on your toes' this earnings period

CNBC’s Jim Cramer on Friday urged investors to make careful, considered decisions regarding their portfolios when the new earnings season kicks off next week.

“It’s a pivotal week. First of three. Be on your toes. Listen to the calls. Don’t take any action unless you’re certain. It’s very hard to be certain about anything that’s just reported,” he said, reiterating some of his five rules for earnings season.

The highly anticipated earnings season will see the biggest companies in tech, retail and consumer goods report their quarterly financial results. 

Cramer previewed the slate of quarterly reports. All estimates for earnings, revenue and economic data are courtesy of FactSet.

Tuesday: General Electric, 3M, Union Pacific, Microsoft

General Electric

  • Q4 2022 earnings release at 6:30 a.m. ET; conference call at 8 a.m. ET
  • Projected EPS: $1.15
  • Projected revenue: $21.25 billion

The company should “show us why we would want to be in its energy division. That’s the next spinoff after health care, but all we really want is the booming aerospace business,” he said.

3M

  • Q4 2022 earnings release at 6:30 a.m. ET; conference call at 9 a.m. ET
  • Projected EPS: $2.37
  • Projected revenue: $8.04 billion

Cramer said that 3M’s roughly 5% dividend yield isn’t enough, considering the litigation risk from lawsuits against the company.

Union Pacific

  • Q4 2022 earnings release at 7:45 a.m. ET; conference call at 8:45 a.m. ET
  • Projected EPS: $2.78
  • Projected revenue: $6.31 billion

The company’s earnings call should give insight into the state of American commerce, Cramer said.

Microsoft

  • Q2 2023 earnings release at 4:05 p.m. ET; conference call at 5:30 p.m. ET
  • Projected EPS: $2.30
  • Projected revenue: $53.13 billion

Investors will “learn whether those layoffs Microsoft announced this week are grounded in disappointment or prudence,” he said.

Wednesday: Boeing, IBM, ServiceNow

Boeing

  • Q4 2022 earnings release at 7:30 a.m. ET; conference call at 10:30 a.m. ET
  • Projected EPS: 22 cents
  • Projected revenue: $20.24 billion

Cramer said he expects a solid quarter from the company.

IBM

  • Q4 2022 earnings release at 4:08 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $3.59
  • Projected revenue: $16.13 billion

He said he likes the stock going into the quarter because it’s a defensive play with a strong 4.7% yield.

ServiceNow

  • Q4 2022 earnings release at 4:10 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $2.02
  • Projected revenue: $1.94 billion

The earnings call will show whether beaten-down enterprise software stocks will find a reprieve this year, he said.

Thursday: Dow, Southwest Airlines

Dow

  • Q4 2022 earnings release at 6 a.m. ET; conference call at 8 a.m. ET
  • Projected EPS: 58 cents
  • Projected revenue: $12.05 billion

Cramer said the company’s stock “seems like a buy.”

Southwest Airlines

  • Q4 2022 earnings release at 6:30 a.m. ET; conference call at 12:30 p.m. ET
  • Projected loss: 7 cents per share
  • Projected revenue: $6.22 billion

The company is no longer one of the best-run airlines, he said.

Friday: American Express

  • Q4 2022 earnings release at 7 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $2.23
  • Projected revenue: $14.23 billion

“American Express is a terrific ‘life-is-too-short’ play,” he said.

Disclaimer: Cramer’s Charitable Trust owns shares of Microsoft.

Cramer's game plan for the trading week of Jan. 23

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