CNBC’s Jim Cramer on Friday urged investors to be cautious, considering decisions about their portfolios as the new earnings season begins next week.
“This is a pivotal week. The third time. Be on your toes. Listen to the phone. Do not do anything unless you are sure. It is very difficult to be sure about anything that is reported,” he said, stating some of the five rules for the season of earnings.
The anticipated earnings season will see the largest companies in technology, retail and consumer goods report their quarterly financial results.
Cramer previews the slate of quarterly reports. All estimates for earnings, revenue and economic data are from FactSet.
Tuesday: General Electric, 3M, Union Pacific, Microsoft
General Electricity
- Q4 2022 earnings release at 6:30 am ET; conference call at 8 a.m. ET
- EPS Projection: $1.15
- Revenue projection: $21.25 billion
The company needs to “show us why we want to be an energy division. It’s the next spinoff after health care, but all they want is a booming aerospace business,” he said.
3M
- Q4 2022 earnings release at 6:30 am ET; conference call at 9 a.m. ET
- EPS Projection: $2.37
- Revenue projection: $8.04 billion
Cramer said 3M’s dividend yield of about 5% was not enough, given the risk of litigation from lawsuits against the company.
Pacific Union
- Q4 2022 earnings release at 7:45 am ET; conference call at 8:45 am ET
- EPS Projection: $2.78
- Revenue projection: $6.31 billion
The company’s earnings call should provide insight into the state of American commerce, Cramer said.
Microsoft
- Q2 2023 earnings release at 4:05 pm ET; conference call at 5:30 pm ET
- EPS Projection: $2.30
- Revenue projection: $53.13 billion
Investors will “learn whether the layoffs Microsoft announced this week are based on disappointment or prudence,” he said.
Wednesday: Boeing, IBM, ServiceNow
Boeing
- Q4 2022 earnings release at 7:30 am ET; conference call at 10:30 a.m. ET
- EPS Projection: 22 cents
- Revenue projection: $20.24 billion
Cramer said he expects a solid quarter from the company.
IBM
- Q4 2022 earnings release at 4:08 pm ET; conference call at 5 pm ET
- EPS Projection: $3.59
- Revenue projection: $16.13 billion
He said he liked the stock entering the quarter because it was a defensive play with a 4.7% return.
ServiceNow
- Q4 2022 earnings release at 4:10 pm ET; conference call at 5 pm ET
- EPS Projection: $2.02
- Revenue projection: $1.94 billion
The earnings call will show whether the company’s battered software stocks will find a reprieve this year, he said.
Thursday: Dow, Southwest Airlines
Dow
- Q4 2022 earnings release at 6 am ET; conference call at 8 a.m. ET
- EPS Projection: 58 cents
- Revenue projection: $12.05 billion
Cramer said the company’s stock “looks like a buy.”
Southwest Airlines
- Q4 2022 earnings release at 6:30 am ET; conference call at 12:30 PM ET
- Projected loss: 7 cents per share
- Revenue projection: $6.22 billion
The company was not one of the best airlines, he said.
Friday: American Express
- Q4 2022 earnings release at 7 am ET; conference call at 8:30 a.m. ET
- EPS Projection: $2.23
- Revenue projection: $14.23 billion
“American Express is a ‘very-short-lived’ play,” he said.
Disclaimer: Cramer’s Charitable Trust owns Microsoft stock.
