Cramer's week ahead: Retail earnings and consumer spending

Investors will get to learn more about the pandemic’s ongoing impact on the consumer economy as retailers prepare to issue quarterly earnings reports, CNBC’s Jim Cramer said Friday.

The industry will have its time in the spotlight on Wall Street after the Commerce Department on Friday said that retail sales were unchanged in the month of April coming off a 10.7% increase in March.

“Next week’s about the consumer spending, whether at home, outside, or in the mall,” the “Mad Money” host said. “Before you bet on which retailer’s doing the best, you need to account where their stocks are coming from, because some of them have run too much while others still have room to play catch up.”

Cramer gave his game plan for the week ahead. Earnings-per-share projections are based on FactSet estimates:

Lordstown Motor

• Q1 2021 earnings release: before market; conference call: 10 a.m.
• Projected losses per share: 28 cents
• Projected revenue: $0

“Lordstown’s a former market darling that was trading at $31 less than four months ago, but management had been excessively promotional when touting their preorder numbers,” Cramer said, “and since then the stock has plunged to $7.”

Fisker

• Q1 2021 earnings release: after market; conference call: 5 p.m.
• Projected losses per share: 19 cents
• Projected revenue: $0

“I think they’ll have a better story to tell about their electric SUV, the Ocean, though I don’t know if it’s going to matter,” he said.

Walmart

• Q1 2022 earnings release: 7 a.m.; conference call: 8 a.m.
• Projected EPS: $1.21
• Projected revenue: $132.16 billion

“There’s been a lot of chatter that the company’s doing well, but e-commerce execution has fallen hopelessly behind Amazon,” Cramer said. “I’ve gotta tell you, I haven’t been able to confirm that grim outlook and I remain convinced that Walmart’s worth owning.”

Home Depot

• Q1 2021 earnings release: 6 a.m.; conference call: 9 a.m.
• Projected EPS: $3.08
• Projected revenue: $34.75 billion

“This may be the most successful do-it-yourself renovation and gardening season in ages,” he said. “Home Depot has a nasty habit of having its stock run into the quarter, so if it has a good day Monday, the stock might sell off after the quarter and that’s your chance to pounce.”

Macy’s

• Q1 2021 earnings release: before market; conference call: 8 a.m.
• Projected losses per share: 39 cents
• Projected revenue: $4.36 billion

“I fear that much of whatever gain it might have has been stolen by today’s 14% advance,” Cramer said. “I expect still one more slightly better-than-expected set of numbers, with a positive undertone.”

Take-Two Interactive

• Q4 2021 earnings release: after market; conference call: 4:30 p.m.
• Projected EPS: 68 cents
• Projected revenue: $661 million

“The stock’s fallen nearly 50 points from where it was trading just before it reported a pretty good quarter last time. I think it can run here,” the host said.

Lowe’s

• Q1 2021 earnings release: before market; conference call: 9 a.m.
• Projected EPS: $2.60
• Projected revenue: $23.73 billion

“I think a rejuvenated Lowe’s, under the leadership of [CEO] Marvin Ellison, is taking share from Home Depot,” Cramer said.

Target

• Q1 2021 earnings release: before market; conference call: 8 a.m.
• Projected EPS: $2.18
• Projected revenue: $21.61 billion

“Target can’t stop putting up good numbers after reasserting itself as the dominant fun discounter,” he said.

TJX

• Q1 2022 earnings release: 9:30 a.m.; conference call: 11 a.m.
• Projected EPS: 30 cents
• Projected revenue: $8.59 billion

“TJX quietly makes great money and this time should be no different,” the host said.

Analog Devices

• Q2 2021 earnings release: 7 a.m.; conference call: 10 a.m.
• Projected EPS: $1.45
• Projected revenue: $1.61 billion

Cisco

• Q3 2021 earnings release: after market; conference call: 4:30 p.m.
• Projected EPS: 82 cents
• Projected revenue: $12.57 billion

“I think they’ll both make us feel real good about the business,” Cramer said. “I expect a very positive outlook.”

Kohl’s

• Q1 2021 earnings release: before market; conference call: 9 a.m.
• Projected EPS: 8 cents
• Projected revenue: $3.35 billion

“It’s too daunting after that huge rally,” Cramer said. “I’ve been not the best on Kohl’s. … Suffice it to say that other people know Kohl’s better than I do.”

Ralph Lauren

• Q4 2021 earnings release: 8 a.m.; conference call: 9 a.m.
• Projected losses per share: 72 cents
• Projected revenue: $1.21 billion

“Ralph Lauren’s going more youthful and upscale,” he said. “It’s a good move, and I predict upgrades into the quarter.”

Petco

• Q1 2021 earnings release: 7:15 a.m.; conference call: 8:30 a.m.
• Projected losses per share: 9 cents
• Projected revenue: $1.27 billion

“I think they’ll be able to capitalize on the pandemic pet boom,” the host said. “The stock jumped nearly 9% today, so it could, again, get away before the quarter.”

Hormel Foods

• Q2 2021 earnings release: before market.; conference call: 9 a.m.
• Projected EPS: 41 cents
• Projected revenue: $2.42 billion

“They recently bought one of the most undermanned, underspent brands in the history of the supermarket, Planters nuts, and I bet they tell a great story about how the acquisition’s already paying off,” he said.

Applied Materials

• Q2 2021 earnings release: after market; conference call: 4:30 p.m.
• Projected EPS: $1.51
• Projected revenue: $5.4 billion

“They’ll have to deal with analyst hecklers tearing apart every sentence, if not every word, because of a sudden plunge in some of those semiconductors,” Cramer said. “I think that’s a total exaggeration, but it won’t stop the analysts from being skeptical.”

Palo Alto Networks

• Q3 2021 earnings release: after market; conference call: 5 p.m.
• Projected EPS: $1.29
• Projected revenue: $1.06 billion

“Who doesn’t want a cyber-security play when a bunch of hackers just shut off the supply of gasoline to the east coast? I bet they have excellent numbers,” he said.

Deere

• Q2 2021 earnings release: before market; conference call: 10 a.m.
• Projected EPS: $4.51
• Projected revenue: $10.57 billion

“It will be a blowout. It’ll be an upside surprise,” Cramer said, “unless the grain complex collapses beforehand … so be sensitive to the commodity chatter, but understand that we’re looking at the strongest agriculture cycle in a decade.”

VF Corp

• Q4 2021 earnings release: 6:55 a.m.; conference call: 8:30 a.m.
• Projected EPS: 28 cents
• Projected revenue: $2.51 billion

“This apparel company’s been inconsistent and the stock will be hostage to Kohl’s and Target,” he said.

Foot Locker

• Q1 2021 earnings release: before market; conference call: 9 a.m.
• Projected EPS: $1.07
• Projected revenue: $1.86 billion

“I think it could have a gap up before getting hit with concerns that there’s just been too much of a good thing and not enough woe, so it’s time to go,” the host said.

Disclosure: Cramer’s charitable trust owns shares of Take-Two Interactive and Walmart.

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