Next week sets the tone for all of revenues season

CNBC’s Jim Cramer on Friday expected the start of revenues season, concentrating on quarterly reports from the huge banks and other business in the packaged foods and travel markets.

The “Mad Money” host’s lookahead followed stocks rallied hard on Wall Street to rebound from Thursday’s huge sell-off, assisting the significant averages end the week greater.

“What happens next week will color the entirety of earnings season,” Cramer stated. “If we get some good ones, we’ll be in party mode, but a negative series of numbers from the banks and some upsetting Covid stats could make for a tough earnings season.”

Revenue and earnings-per-share forecasts are based upon FactSet quotes:

PepsiCo

• Q4 2021 revenues release: 6 a.m.; teleconference: 8: 15 a.m.
• Projected EPS: $1.53
• Projected income: $17.97 billion

JPMorgan Chase

• Q2 2021 revenues release: 7 a.m.; teleconference: 8: 30 a.m.
• Projected EPS: $3.16
• Projected income: $29.96 billion

“PepsiCo [will give] us multitudes, however they likewise need to discuss how raw expenses keep increasing, particularly freight. JP Morgan must offer us exceptional numbers, too, however they’re going to need to discuss how trading and financing aren’t as strong as they need to be,” Cramer stated.

“I think both stocks are too high at this moment, given those two negatives,” he continued. “I would hold off on buying them before earnings unless, of course, we get a meaningful pullback on Monday.”

Goldman Sachs

• Q2 2021 revenues release: 7: 30 a.m.; teleconference: 9: 30 a.m.
• Projected EPS: $10
• Projected income: $12.13 billion

“If people are worried about trading profits … they’re going to have to be extra worried about Goldman, because so much of their business is trading profits, even as corporate financial revenues should be very strong,” he stated.

Wells Fargo

• Q2 2021 revenues release: 8 a.m.; teleconference: 11: 30 a.m.
• Projected EPS: 95 cents
• Projected income: $17.77 billion

“Wells is a turnaround story, more than it is a banking story,” Cramer stated. “If CEO Charlie Scharf tells us a good tale about how the turn is going, then I think his stock can actually break away from the group, maybe even make new highs for the year.”

Bank of America

• Q2 2021 revenues release: 6: 45 a.m.; teleconference: 9 a.m.
• Projected EPS: 77 cents
• Projected income: $21.86 billion

“If you believe the economy’s gonna get stronger and interest rates will rise, and maybe rapidly rise, then you want to buy the stock of Bank of America right here, right now,” he stated.

Citigroup

• Q2 2021 revenues release: 8 a.m.; teleconference: 10 a.m.
• Projected EPS: $1.99
• Projected income: $17.32 billion

“I’m not sure about Citigroup’s earnings quality, new CEO there, it’s an inexpensive stock, but I don’t want to get behind it,” the “Mad Money” host stated.

Delta Air Lines

• Q2 2021 revenues release: prior to market; teleconference: 10 a.m.
• Projected EPS: $1.36
• Projected income: $6.14 billion

“I want to know how much damage the Delta Covid strain is doing to Delta,” Cramer stated. “We also need to know if business travelers are finally coming back.”

BlackRock

• Q2 2021 revenues release: prior to market; teleconference: 8: 30 a.m.
• Projected EPS: $9.31
• Projected income: $4.6 billion

“I’m sincerely hoping they tell us their position on outfits like Engine No. 1,” he stated.

UnitedHealth Group

• Q2 2021 revenues release: prior to market; teleconference: 8: 45 a.m.
• Projected EPS: $4.43
• Projected income: $69.47 billion

“It is still buyable, here,” Cramer stated.

Alcoa

• Q2 2021 revenues release: after market; teleconference: 5 p.m.
• Projected EPS: $1.28
• Projected income: $2.64 billion

“They gave us a fantastic quarter last time, but now it looks like many of the cyclicals have peaked,” he stated. “This one’s especially important because aluminum goes into everything and the rising cost has been a major stumbling block for gross margins for a lot of the buyers of aluminum.”

First Horizon

• Q2 2021 revenues release: 6: 45 a.m.; teleconference: 9: 30 a.m.
• Projected EPS: 39 cents
• Projected income: $771 million

“I think it could be a whopper because its core Tennessee market is red-hot,” Cramer stated.

Kansas City Southern

• Q2 2021 revenues release: prior to market; teleconference: 8: 45 a.m.
• Projected EPS: $2.17
• Projected income: $750 million

“Expect them to comment maybe on Biden’s newfound hostility to the industry,” he stated. “I think the White House is trying to block this deal. I wouldn’t be surprised if they somehow get their way.”

Disclosure: Cramer’s charitable trust owns shares of Wells Fargo.

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