CNBC’s Jim Cramer said Friday that next week will be a critical moment for determining what the next earnings season will look like.
“It’s been ages since we’ve been under the pre-advertisement scrutiny that companies have to admit that things are not going well. Things like rising labor costs, supply chain problems and the war between Russia and Ukraine. The bottom line for companies – such a mess, that some companies It may lower its forecast next week before it’s due to report, the “Mad Money” host said.
“If we go through the next week without being affected by the negative pre-announcements, it makes me feel more confident that July won’t be as bad as we just went through, and it makes me more optimistic,” he added.
Cramer said he’s watching the Case-Shiller home price index next week to see if there’s any indication that rapidly rising home prices have slowed due to higher interest rates at the Federal Reserve.
He added that he would review PMI data, which is seen as a measure of overall economic health, to shed more light on the state of inflation.
However, the most important number for this week will be the PCE price index, according to Kramer. “We should see progress in these inflation numbers, or we can expect another 50 or 75 rate hike,” he said.
Cramer also reviewed the earnings list for the coming week. All earnings and revenue estimates are provided by FactSet.
Monday: nike
- release of Q4 2022 earnings at 4:15 p.m. ET; Conference call at 5 p.m. ET
- Expected earnings per share: 81 cents
- Expected revenue: $12.07 billion
“With a great CEO like John Donahoe at the helm…I think investors will look at Nike’s weakness in China and buy this thing,” Cramer said.
Tuesday: AeroVironment
- release of Q4 2022 earnings at 4:10 p.m. ET; Conference call at 4:30 p.m. ET
- Expected EPS: 39 cents
- Expected revenue: $134 million
Cramer said he was interested to know if the US government had ordered more drones from the company to send to Ukraine.
Wednesday: General Mills, McCormick, Bed Bath & Beyond, Bay Cheeks
general mills
- Announcement of Q4 2022 earnings at 7 AM ET; Conference call at 9 a.m. ET
- Expected EPS: $1.01
- Expected revenue of $4.8 billion
McCormick
- Announcement of Q2 2022 earnings at 6:30 a.m. ET; Conference call at 8 a.m. ET
- Expected EPS: 65 cents
- Expected revenue: $1.61 billion
According to Kramer, both General Mills and McCormick are “high quality stocks of idle stock.”
bed bath behind
- Announcing Q1 2022 earnings at 7 a.m. ET; Conference call at 8:15 a.m. ET
- Expected loss: $1.38 loss per share
- Expected revenue: $1.51 billion
He said: “I have always opposed this retailer for endlessly repurchasing their shares at high prices while showing nothing in return.
Paychex
- Q4 2022 earnings announcement at 8:30 a.m. ET; Conference call at 9:30 a.m. ET
- Expected EPS: 80 cents
- Expected revenue: $1.11 billion
“Paychex is going to make a lot of extra money thanks to the Fed raising interest rates, because it collects interest while people wait to deposit their checks,” Cramer said.
Thursday: Constellation Brands, Micron
Constellation brands
- First Quarter 2023 Earnings Announcement at 7:30 AM ET; Conference call at 10:30 a.m. ET
- Expected EPS: $2.52
- Expected revenue: $2.16 billion
Cramer said he thinks people underestimate the company’s growth.
micron
- Announcing Q3 2022 earnings at 4 PM ET; Conference call at 4:30 p.m. ET
- Expected EPS: $2.46
- Expected revenue: $8.67 billion
“I think Micron has been hit hard by the Chinese shutdown and its problems may immediately spill over to the entire complex,” he said. He said.
Disclosure: The Kramer Charitable Fund owns shares in Constellation Brands.