Earnings season has been 'far better' than expected

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CNBC’s Jim Cramer, marking the tip of earnings season, on Friday stated the slate of main company studies over the previous weeks had been “much better than anybody anticipated.”

The outcomes revealed, he stated, that buyers have a spread of funding alternatives, barring any speculative buying and selling that has recently confounded Wall Avenue professionals.

The feedback come after main U.S. averages rose in Friday’s session, handing over back-to-back weeks of beneficial properties that took the market to new highs. The Dow Jones Industrial Common moved 1% greater this week to shut at 3,458.40 and the S&P 500 elevated 1.23% to three,934.83. The tech-heavy Nasdaq Composite outgained bot, climbing 1.7% greater to 14,095.47.

After the shut, Cramer stated market exercise has turn out to be much less unstable after a number of weeks of high-volume buying and selling.

“I like regular, as a result of if we’re not cautious, an excellent portion of this market could be headed down the freeway to the hazard zone,” the “Mad Cash” host stated. “A day with much less froth, like right this moment, is a day the place the rally feels extra sustainable. But when the hashish cohort and the short-busters and the unbelievable pumping and dumping I’m seeing on the net is coming again, properly you recognize I’ll must get extra unfavourable.”

Cramer gave his recreation plan for the week forward. Earnings-per-share projections are primarily based on FactSet estimates:

Tuesday: CVS Well being, Zoetis, Ring Central and Occidental earnings

CVS Health

Q4 earnings release: before market; conference call: 8:45 a.m.
Projected EPS: $1.24
Projected revenue: $68.73 billion

“CVS has been challenged as a drug store by Amazon and challenged on the health insurance side by a host of competitors,” Cramer said. “If [CEO Karen] Lynch can raise numbers and back that up some solid traffic projections … I could see the stock finally getting the traction it deserves.”

Zoetis

Q4 earnings release: before market; conference call: 8:30 a.m.
Projected EPS: 86 cents
Projected revenue: $1.74 billion

“I think you’ll see another round of gains in the humanization of pets stocks,” he said.

RingCentral

Q4 earnings release: after market; conference call: 5 p.m.
Projected EPS: 27 cents
Projected revenue: $318 million

“RingCentral makes call center software, but they’ve also got a video conference platform that competes with Zoom and grows well,” the host said. “The company’s aggressive and it grows rapidly.”

Occidental Petroleum

Q4 earnings release: after market; conference call: Wednesday, 11 a.m.
Projected losses per share: 58 cents
Projected revenue: $4.32 billion

“Many are predicting that the long bear market in oil is over. I am not so sure about that — too much supply — but if you believe it, no one is more bullish on oil than Occidental’s CEO, Vicki Holub,” he said.

Wednesday: Shopify, Twilio, Fastly, Pioneer Natural Resources and Boston Beer earnings

Shopify

Q3 2021 earnings release: 6 a.m.; conference call: 8:30 a.m.
Projected EPS: $1.26
Projected revenue: $913 million

Twilio

Q4 earnings release: after market; conference call: 5 p.m.
Projected losses per share: 8 cents
Projected revenue: $455 million

“I bet two of them deliver stellar, amazing quarters,” Cramer said.

Fastly

Q4 earnings release: after market; conference call: 5 p.m.
Projected losses per share: 11 cents
Projected revenue: $82 million

“They’ve been rebuilding their credibility after a big shortfall in October,” he said. “I think the problems are behind them.”

Pioneer Natural Resources

Q4 earnings release: after market; conference call: Thursday, 9 a.m.
Projected EPS: 70 cents
Projected revenue: $1.89 billion

“I don’t recommend many oil companies these days, but if you put a gun to my head to make me choose, I’d say, ‘would you please put the gun down and just go buy Pioneer,'” the host said.

Boston Beer

Q4 earnings release: 4:15 p.m.; conference call: 5 p.m.
Projected EPS: $2.63
Projected revenue: $453 million

“If one more company enters this hard seltzer business, will it be too much for them to handle?” he said. “I bet you can get still get another good quarter here, but do not overstay your welcome when you have guns coming at you like those guys. The field is getting crowded.”

Thursday: Walmart, Barrick Gold, Applied Materials, Roku, The Trade Desk

Walmart

Q4 2021 earnings release: 7 a.m.; conference call: 8 a.m.
Projected EPS: $1.51
Projected revenue: $148.26 billion

“I want to hear about some initiatives and benchmarks that show us that Walmart’s still hungry,” Cramer said.

Barrick Gold

Q4 earnings release: 6 a.m.; conference call: 11 a.m.
Projected EPS: 31 cents
Projected revenue: $3.25 billion

“I know that CEO Dr. Mark Bristow will give you a look at the only real growth and income play in the industry I trust,” he said. “It’s a buy ahead of the quarter if you like gold.”

Applied Materials

Q1 2021 earnings release: 4:01 p.m.; conference call: 4:30 p.m.
Projected EPS: $1.28
Projected revenue: $4.97 billion

“The stock has been rallying like crazy because of the [chip] shortage, but I think things are good enough for it to keep climbing, especially since the Biden White House seems to recognize the scale of the problem,” the host said.

Roku

Q4 earnings release: after market; conference call: 5 p.m.
Projected losses per share: 6 cents
Projected revenue: $615 million

Trade Desk

Q4 earnings release: after market; conference call: 5 p.m.
Projected EPS: $1.88
Projected revenue: $292 million

“These companies are cord-cutting kingpins that are designed for the new world of watching and advertising sans cable. Everyone keeps wondering when their gains will stop,” he said. “Me, I’m wondering why anyone expects them to stop when it took cable decades to supplant traditional broadcast TV.”

Friday: Deere and Magna earnings

Deere

Q1 2021 earnings release: before market; conference call: 10 a.m.
Projected EPS: $2.12
Projected revenue: $7.14 billion

“I bet Deere tells a story of higher commodity prices that has its order books brimming with tractors,” Cramer said.

Magna

Q4 earnings release: before market; conference call: 8 a.m.
Projected EPS: $2.58
Projected revenue: $13.03 billion

“We’ve got a red-hot auto market, they’re the best assembler, and these guys also assemble cars for compelling electric vehicle players, like Fisker,” he said.

Disclosure: Cramer’s charitable trust owns shares of CVS Health and Walmart.

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