Waiting to trade on company profits

On Friday, CNBC’s Jim Cramer warned investors not to make trading decisions on the back of a company’s earnings report.

Stocks rallied on Friday after initially falling on quarterly earnings reports and recession warnings from major banks. All three major indexes ended the week higher as investors digested a series of earnings reports and economic data suggesting inflation is easing.

Cramer, who earlier this week offered investors a set of guidelines for earnings season, called Friday’s trading session an example of why investors should be disciplined with their portfolios.

“Every quarter I make the same argument about how you should wait and do more work before you pull the trigger, but a lot of people are still not convinced,” he said.

He also reviewed the list of quarterly reports for next week. All earnings, revenue and economic data estimates are provided courtesy of FactSet.

Tuesday: Goldman Sachs, Morgan Stanley, United Airlines

Goldman Sachs

  • Fourth Quarter 2022 Earnings Release at 7:30 a.m. ET; conference call at 9:30 a.m. ET
  • Projected EPS: $5.56
  • Projected revenue: $10.76 billion

Shares of the company could soar if the earnings report beats expectations, he said.

Morgan Stanley

  • Fourth Quarter 2022 Earnings Release at 7:30 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $1.29
  • Projected revenue: $12.54 billion

Cramer said he expects a “great” report form the bank.

United Airlines

  • Fourth Quarter 2022 Earnings Release at 4:30 p.m. ET; conference call on Wednesdays at 10:30 a.m. ET
  • Projected EPS: $2.11
  • Projected revenue: $12.23 billion

The company will post big numbers as consumers still spend on travel, he predicted.

Wednesday: JB Hunt Transport, Alcoa

Transport JB Hunt

  • Publication of the results for the fourth quarter of 2022 before the bell; conference call at 9 a.m. ET
  • Projected EPS: $2.45
  • Projected revenue: $3.83 billion

Cramer said he would watch for any signs of a slowdown in trade.

Alcoa

  • Fourth Quarter 2022 Earnings Release at 4:10 p.m. ET; conference call at 5 p.m. ET
  • Expected loss: 69 cents per share
  • Projected revenue: $2.65 billion

The metals “have become mindless ranchers. … The aluminum company knows if the movement of the metals is just a squeeze or the real deal with real demand,” he said.

Thursday: Procter & Gamble, Netflix

Procter & Gamble

  • Q2 2023 earnings release at 6:55 a.m. ET; conference call at 8:30 a.m. ET
  • Projected EPS: $1.58
  • Projected revenue: $20.70 billion

He said he expects the company to have a strong quarter as gross costs decline and currency headwinds ease.

netflix

  • Fourth Quarter 2022 Earnings Release at 4:00 p.m. ET; conference call at 6 p.m. ET
  • Projected EPS: 58 cents
  • Projected revenue: $7.84 billion

“I think Netflix might be one of the strongest stories,” he said.

Friday: SLB

  • Fourth Quarter 2022 Earnings Release at 7:00 a.m. ET; conference call at 9:30 a.m. ET
  • Projected EPS: 68 cents
  • Projected revenue: $7.78 billion

“SLB will tell us where the new finds are. They’ll be playing with an open hand. I bet they’ll give you a little update on Russia as well,” he said.

Disclaimer: Cramer’s Charitable Trust owns shares of Morgan Stanley and Procter & Gamble.

Cramer's game plan for the January 1 trading week.  16

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