The crucial week of profits season

CNBC’s Jim Cramer stated Friday that Wall Street will be overwhelmed next week with a complete slate of profits reports from a few of the most identifiable names in service.

After the significant averages all completed the session at all-time highs, getting rid of issues about financial development, the “Mad Money” host stated it leaves almost no space for mistake.

“This is the toughest week of the quarter when it comes to making informed financial decisions,” he stated. “There aren’t enough hours in the day to read all the conference calls … so do your best to focus on a few.”

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

Tesla

• Q2 2021 profits release: after market; teleconference: 5: 30 p.m.
• Projected EPS: 94 cents
• Projected earnings: $11.53 billion

“Tesla’s one of the few big companies with a stock that’s well off its highs, so it should have an easier time rallying on good news,” Cramer stated.

Apple

• Q3 2021 profits release: 4: 30 p.m.; teleconference: 5 p.m.
• Projected EPS: $1.01
• Projected earnings: $73.3 billion

“We’re going into a big launch—all the new models will support 5G—and there should be an incredible number of upgrades,” Cramer stated. “Hopefully, Apple will start breaking out the lifetime value of their customers this quarter thanks to this increasingly sticky service revenue stream.”

Alphabet

• Q2 2021 profits release: after market; teleconference: 4: 30 p.m.
• Projected EPS: $19.20
• Projected earnings: $56.19 billion

“Watch their cash hoard, it continues to build,” he stated.

Microsoft

• Q4 2021 profits release: after market; teleconference: 5: 30 p.m.
• Projected EPS: $1.91
• Projected earnings: $44.13 billion

“Normally, the analysts underestimate Microsoft, allowing the company to easily beat expectations, but this time the stock may actually head lower … the expectations are finally catching up with them,” Cramer stated.

Advanced Micro Devices

• Q2 2021 profits release: after market; teleconference: 5 p.m.
• Projected EPS: 54 cents
• Projected earnings: $3.62 billion

“Under the brilliant leadership of Lisa Su, AMD has surpassed Intel in terms of giving its customers what they want,” he stated. “I hope she can announce a closing date for the Xilinx acquisition because the arbitrage pressure is dragging down the stock more than the earnings can lift it.”

Boeing

• Q2 2021 profits release: prior to market; teleconference: 10: 30 a.m.
• Projected losses per share: 81 cents
• Projected earnings: $16.72 billion

“I can see Boeing giving you a terrible number … and then telling you they may even have to raise more money,” Cramer stated. “Those punches might be worth enduring, because air travel’s already coming back and once we triumph over these new Covid variants, I expect the airlines to place very big orders.”

Bristol-Myers Squibbs

• Q2 2021 profits release: prior to market; teleconference: 8 a.m.
• Projected EPS: $1.89
• Projected earnings: $11.27 billion

“I expect them … to be weak again,” the host stated.

McDonald’s

• Q2 2021 profits release: 7 a.m.; teleconference: 8: 30 a.m.
• Projected EPS: $2.11
• Projected earnings: $5.58 billion

“I think people are coming back to the stores, so McDonald’s will guide up numbers and people will buy the stock,” the host stated.

Facebook

• Q2 2021 profits release: after market; teleconference: 5 p.m.
• Projected EPS: $3.04
• Projected earnings: $27.84 billion

“I don’t expect a coronation, but let’s just say it’ll be tough for Facebook to have a bad quarter—online advertising is too strong,” Cramer stated.

Ford

• Q2 2021 profits release: 4: 05 p.m.; teleconference: 5 p.m.
• Projected losses per share: 3 cents
• Projected earnings: $22.83 billion

“I think numbers have to go up here because the cars and trucks are simply better than they used to be and the markets they operate in are more profitable,” he stated. “I don’t expect this quarter to be good … I’m saying that 2022 could be good.”

Mastercard

• Q2 2021 profits release: prior to market; teleconference: 9 a.m.
• Projected EPS: $1.74
• Projected earnings: $4.37 billion

“That [American] Express quarter was wonderful. I believe Mastercard is going to inform us an excellent story, too,” he stated.

Amazon

• Q2 2021 profits release: 4: 01 p.m.; teleconference: 5: 30 p.m.
• Projected EPS: $12.20
• Projected earnings: $115.34 billion

“I think the high-margin advertising business will be the star of the show — same reason I like Alphabet,” Cramer stated. “I remain faithful to the stock.”

Twilio

• Q2 2021 profits release:after market; teleconference: 5 p.m.
• Projected losses per share: 13 cents
• Projected earnings: $598 million

“Another company that I’m betting will surprise to the upside, Twilio,” he stated.

Exxon Mobil

• Q2 2021 profits release: prior to market; teleconference: 9: 30 a.m.
• Projected EPS: $1.01
• Projected earnings: $64.64 billion

Chevron

• Q2 2021 profits release: prior to market; teleconference: 11 a.m.
• Projected EPS: $1.59
• Projected earnings: $36.33 billion

“I urge you to go into both of them with an open mind,” Cramer stated. “There was a time when I thought the oils were uninvestable because too many younger money managers care about the environment, but you know what the major oils have gotten religion on this issue.”

Caterpillar

• Q2 2021 profits release: 6: 30 a.m.; teleconference: 8: 30 a.m.
• Projected EPS: $2.41
• Projected earnings: $12.51 billion

“The stock’s been down — no infrastructure bill, perhaps a slowing in orders — but the stock’s decline makes me comfortable buying a little right here, right now,” he stated. “Could be a big second-half turn.”

Disclosure: Cramer’s charitable trust owns shares of Apple, Alphabet, Microsoft, Advanced Micro Devices, Boeing, Facebook, Bristol-Myers Squibb and Ford.

Disclaimer