Wait earlier than buying and selling company income

CNBC’s Jim Cramer on Friday warned investors not to make trading decisions right after a company’s earnings report.

Stocks staged a comeback on Friday after initially falling on earnings reports and recession warnings from major banks. All three major indices ended the week higher as investors processed a slew of earnings reports and economic data that suggested inflation was cooling.

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

“Every quarter I make the same argument about waiting and working more before pulling the trigger, but a lot of people aren’t convinced yet,” he said.

He also went through next week’s quarterly reports. All revenue, revenue and economic data estimates are from FactSet.

Tuesday: Goldman Sachs, Morgan Stanley, United Airlines

Goldman Sachs

• Q4 2022 results release at 7:30am ET; Conference call at 9:30 a.m. ET
• Estimated earnings per share: $5.56
• Estimated Revenue: $10.76 billion

The company’s stock could surge higher if the earnings report beats expectations, he said.

MorganStanley

• Q4 2022 results release at 7:30am ET; Conference call at 8:30 a.m. ET
• Estimated earnings per share: $1.29
• Estimated Revenue: $12.54 billion

Cramer said he expects a ‘great’ report from the bank.

United Airlines

• Q4 2022 results release at 4:30pm ET; Conference call Wednesday at 10:30 a.m. ET
• Estimated earnings per share: $2.11
• Estimated Revenue: $12.23 billion

The company will come up with big numbers as consumers continue to spend on travel, he predicted.

Wednesday: JB Hunt Transport, Alcoa

JB hunting transport

• Q4 2022 earnings release before the bell; Conference call at 9 p.m. ET
• Estimated earnings per share: $2.45
• Estimated Revenue: $3.83 billion

Cramer said he will be on the lookout for signs of a slowdown in trading.

Alcoa

• Q4 2022 results release at 4:10 p.m. ET; Conference call at 5:00 p.m. ET
• Estimated loss: 69 cents per share
• Estimated Revenue: $2.65 billion

The metals “have become insane stock breeders. … The aluminum company knows if the metals movement is just a pressure point or the real deal with actual demand,” he said.

Thursday: Procter & Gamble, Netflix

Procter & Gamble

• Q2 2023 results release at 6:55am ET; Conference call at 8:30 a.m. ET
• Estimated earnings per share: $1.58
• Estimated Revenue: $20.70 billion

He said he expects the company to report a solid quarter as raw costs fall and FX market headwinds ease.

Netflix

• Q4 2022 results release at 4:00 p.m. ET; Conference call at 6:00 p.m. ET
• Estimated earnings per share: 58 cents
• Estimated Revenue: $7.84 billion

“I think Netflix could be one of the strongest stories out there,” he said.

Friday: SLB

• Q4 2022 results release at 7:00 am ET; Conference call at 9:30 a.m. ET
• Estimated earnings per share: 68 cents
• Estimated Revenue: $7.78 billion

“SLB will tell us where the new finds are. You will play with an open hand. I bet you they also give you a little update on Russia,” he said.

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

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