Wall Street can look forward to a heavy week of earnings next week, with two Dow components and nearly a quarter of the S&P 500 index scheduled to report. Here’s what “Mad Money” host Jim Cramer expects of select earnings in the days to come.
MONDAY, APRIL 30
To start, Cramer will look for an earnings announcement from Harman International Industries at 8 a.m. ET, followed by an earnings conference call at 11 a.m. ET. The Stamford, Conn.-based company makes various audio products and electronic systems for use in the home or car. Its sound systems have become a “necessity” in the auto industry, Cramer said. So he thinks company executives will have a lot of good things to say.
SBA Communications will report earnings after Monday’s closing bell. From its headquarters in Boca Raton, Fla., SBA Communications owns and operates wireless communications towers in the United States, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua and Panama. The demand for these towers is increasing, as more and more cell phones are activated. In turn, Cramer expects a “terrific quarter” from SBA.
TUESDAY, MAY 1
Cramer will monitor Biogen Idec’s earnings conference call, which is scheduled for Tuesday at 8 a.m. ET. The Weston, Mass.-based company makes therapies for the treatment of neurodegenerative diseases, hemophilia and autoimmune disorders. To Cramer, Biogen Idec is “one of the best biotechs around.” Needless to say, he is optimistic about its quarterly results.
Engine maker Cummins will host its earnings conference call at 10 a.m. ET. To Cramer, the trucking industry is in a “powerful, long-term bull market.” Rivals Navistar International and Caterpillar , however, have only offered bearish inputs. So Cummins might not be a good buy ahead of the quarter, Cramer said reluctantly. He recommends taking profits going into Cummins’ results.
Emerson Electric has scheduled an earnings conference call for 2 p.m. ET. From its headquarters in St. Louis, it operates as a diversified technology company worldwide. From Eaton to Honeywell International and 3M , Cramer pointed out that many companies in the industrial goods sector have been doing well lately. Emerson, on the other hand, has been reporting disappointing numbers lately. So Cramer recommends taking profits ahead of the quarter.
Cramer said he’d recommend investors take profits ahead of Chesapeake Energy’s earnings, too, but few investors have any profits left. Chesapeake’s stock fell sharply after a Reuters investigation last week showed CEO Aubrey McClendon has borrowed as much as $1.1 billion in the last three years to fund the costs of well stakes granted to him by Chesapeake. Most of the loans were made by EIG Global Energy Partners, an investment management firm that has invested $2.5 billion in Chesapeake along with other investors.
“We're going to need to hear some real explanations for what's going on at this company and while many people have been saying that McClendon may have to step down, I think that's highly unlikely because Aubrey is the company,” Cramer said. “Chesapeake needs money to keep its drilling going, but I don't know who's going to give it to him. They may have to announce a fire sale of assets.”
WEDNESDAY, MAY 2
Wednesday should prove to be a busy day of earnings with Time Warner kicking things off at 7 a.m. ET, followed by an earnings conference call at 10:30 a.m. ET. Cramer thinks CEO Jeffrey Bewkes has done a great job of running the media and entertainment company, even if its stock is only up 5 percent for the year. Nevertheless, he thinks executives will provide a positive outlook.
CVS Caremark has an earnings conference all scheduled for 8:30 a.m. ET. The Woonsocket, R.I.-based company operates more than 7,000 drug stores across the United States. Rival Walgreen has been losing customers thanks to its ongoing dispute with pharmacy benefits manager Express Scripts . Cramer thinks many of these customers are going to CVS and it seems others agree, as the stock has been hitting new highs lately. If CVS executives have positive commentary, Cramer suspects its stock could continue to push higher.
Later that morning, Garmin will conduct its earnings conference call at 10:30 ET. The Schaffhausen, Switzerland-based company makes a variety of scientific and technical instruments, but is probably best known for its global positioning system-enabled products. Cramer was surprised to hear these GPS devices have been “selling like flapjacks” and the short-sellers can’t believe it either. He thinks the company will do “quite well,” though.
Allergan , the company behind one of Cramer’s favorite growth stocks, will host its earnings conference call at 11 a.m. ET. The Irvine, Calif.-based company specializes in many areas of health care. It develops and sells a variety of products, such as pharmaceuticals, Botox, silicone breast implants, Juvederm Voluma, and Latisse eyelash thickener.
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According to a study recently published in the Journal of the American Medical Association, the main ingredient in Botox may be modestly helpful for people with chronic migraines, but the wrinkle treatment doesn't seem to offer much relief for those whose headaches are less frequent. Cramer isn’t too worried about the findings, though.
“I think if you have chronic migraines, you're simply going for relief,” Cramer said, adding he thinks CEO David Pyott will have a lot of good things about the company’s latest quarter.
Allergan’s stock typically trades down after the company reports, Cramer said, so wait for the pullback before buying shares.
Later in the day, Cramer will look for Clorox’s earnings results. The Oakland, Calif.-based company will have an earnings conference call at 1:30 p.m. ET. Cramer likes Clorox because it makes everything from cleaning products, such as Pine-Sol to cat litter under the Fresh Step brand, as well as Hidden Valley Ranch salad dressing and Kingsford’s charcoal, among many other products. People don't stop buying these items because of the economic slowdown, Cramer said. He expects to hear about new additions to its product line and feels confident it will deliver on expectations.
Regardless of how Clorox’s earnings fare, Cramer likes the stock’s 3.4 percent dividend yield.
THURSDAY, MAY 3
Dayton, Ohio-based Teradata will hold its conference call at 8 a.m. ET. From F5 Networks to Equinix , Cramer noted that many of the big data companies have recently reported “spectacular numbers” and watched their stocks soar as a result. Cramer thinks Teradata is the “best of the cohort” and expects its stock could skyrocket after earnings.
Cramer looks forward to a 10 a.m. ET earnings conference call from Airgas . Some time ago, the company turned down a $70 a share takeover bid from Air Products & Chemicals . At the time, CEO Peter McCausland said he thought he could do better than that for his shareholders. Many doubted that claim, but Cramer sided with McCausland. Today, the stock flirts with $90 a share and more.
“He's a sensational guy and he's Airgas' largest shareholder,” Cramer said of McCausland. “The stock's a little too hot for my taste, but if it comes in ahead of the quarter, you might want to nibble.”
After Thursday’s close, Cramer will monitor AIG’s quarterly results. Cramer praised CEO Robert Benmosche, who he expects will tell an “amazing story.”
“Many of you are worried that the U.S. government will unload its huge stake in the company now that the stock's back to the mid $30s,” Cramer said. “I'm confident that if AIG reports the terrific number I'm expecting, it will go even higher and we're going to wish the government sold stock to get rid of the overhang. “
FRIDAY, MAY 4
Although it’s been a heavy week of earnings, Cramer plans to give his full attention to Friday’s jobs number. The U.S. Department of Labor will release the employment number at 8:30 a.m. ET.
“Frankly, I'm concerned about this number because the weekly jobless claims have been disappointing of late,” Cramer said.
—Read on for Cramer: The Best Run US Companies
—Reuters contributed to this report
When this story was published, Cramer’s charitable trust owned AIG.
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