CNBC’s Jim Cramer said on Friday that the next week will be a defining moment in determining what the upcoming reporting season will look like.
“It’s been many years since we’ve seen pre-announcements where companies had to admit things weren’t going well. Things like higher labor costs, supply chain problems, and a war between Russia and Ukraine. corporate results are such a mess that some companies may cut their forecasts next week before they have to report,” the Mad Money host said.
“If we get through next week without negative pre-announcements, it will give me confidence that July won’t be as bad as what we just went through and it will make me more optimistic.” he added.
Cramer said he is monitoring the Case-Shiller House Price Index next week to see if there are any signs that rapidly rising house prices have slowed down due to the Federal Reserve’s interest rate hike.
He added that he would study the data from the Purchasing Managers’ Index, which is seen as a measure of overall economic health, to further shed light on the state of inflation.
However, according to Cramer, the most important number for the week will be the personal consumption price index. “We need to see progress in these inflation figures, otherwise we can expect another 50 or 75 point rate hike,” he said.
Cramer also announced next week’s earnings report. All earnings and earnings estimates are provided by FactSet.
- 2022 Q4 Earnings at 4:15 pm ET; conference call at 5:00 pm ET
- Projected earnings per share: 81 cents
- Projected revenue: $12.07 billion
“With a great leader like John Donahue at the helm… I think investors will look at Nike’s weakness in China and buy this thing,” Cramer said.
- 2022 Q4 Earnings at 4:10 pm ET; Conference call at 4:30 pm ET
- Projected earnings per share: 39 cents.
- Projected income: $134 million.
Kramer said he was interested to know if the US government has ordered more drones from the company to be sent to Ukraine.
Wednesday: General Mills, McCormick, Bed Bath & Beyond, Paychex.
- 2022 Q4 earnings report at 7 am ET; conference call at 9 am ET
- Projected earnings per share: $1.01.
- projected income; $4.8 billion
- 2022 Q2 Earnings at 6:30 AM ET; conference call at 8am ET
- Projected earnings per share: 65 cents.
- Projected revenue: $1.61 billion.
According to Cramer, both General Mills and McCormick are “high-quality slowdown stocks.”
Bed Bath and more
- 2022 Q1 Income Statement at 7:00 AM ET; Conference call at 8:15 am ET
- Projected loss: loss of $1.38 per share.
- Projected revenue: $1.51 billion.
“I have always scolded this retailer for endlessly buying back their shares at high prices with nothing to show… The cash on hand is shrinking,” he said.
- 2022 Q4 Earnings at 8:30 AM ET; Conference call at 9:30 AM ET
- Projected earnings per share: 80 cents.
- Projected revenue: $1.11 billion.
“Paychex will make a lot of extra money from the Fed’s rate hike because they collect interest while they wait for people to deposit their checks,” Cramer said.
Thursday: Constellation Brands, Micron
Constellation of brands
- 2023 Q1 Earnings at 7:30 AM ET; Conference call at 10:30 AM ET
- Projected earnings per share: $2.52.
- Projected revenue: $2.16 billion.
Kramer said he thinks people underestimate the company’s growth.
- 2022 Q3 Earnings at 4:00 pm ET; Conference call at 4:30 pm ET
- Projected earnings per share: $2.46.
- Projected revenue: $8.67 billion.
“I think Micron has been hit hard by the China lockdown and its woes could be instantly transferred to the entire complex.” he said.
Disclosure: Cramer’s Charitable Trust holds shares in Constellation Brands.