Cramer's week ahead: The impact of inflation and the reopening as earnings season accelerates

CNBC’s Jim Cramer said Friday that the “real earnings” season will get underway Monday after the major banks posted their quarterly results earlier this week.

“We’re actually going to get the impact of both inflation and the reopening,” he said on “Mad Money.” “I think the former’s a big negative, but the latter’s so positive that the ball can stay in the air, ready for a beautiful stuff over the net and to the floor.”

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

Coca-Cola

• Q1 2021 earnings release: before market; conference call: 8:30 a.m.
• Projected EPS: 50 cents
• Projected revenue: $8.68 billion

“I worry that Coca-Cola’s pure beverage with no snacking business,” Cramer said, “but I still expect a good number from them and a great story about food service reopenings.”

United Airlines

• Q1 2021 earnings release: after market; conference call: Tuesday at 10:30 a.m.
• Projected losses per share: $7.05
• Projected revenue: $3.27 billion

“If it’s anything like Delta, you’re going to hear about the coming boom,” he said, adding the stock can continue to rally. “I think it’s the right place to be.”

IBM

• Q1 2021 earnings release: after market; conference call: 5 p.m.
• Projected EPS: $1.69
• Projected revenue: $17.32 billion

“What will the new IBM do, the one that kept the fast-growing businesses led by Red Hat? I think it’s too early to tell, but the stock’s been hanging in there,” Cramer said.

Abbott Laboratories

• Q1 2021 earnings release: before market; conference call: 9:30 a.m.
• Projected EPS: $1.27
• Projected revenue: $10.69 billion

“Abbott’s done such great work on Covid diagnostics … that it’s hard to believe they won’t hit it out of the park,” Cramer said.

Johnson & Johnson

• Q1 earnings 2021 release: 6:45 a.m.; conference call: 8:30 a.m.
• Projected EPS: $2.34
• Projected revenue: $22 billion

“J&J’s gotten more controversial, though I think it’s been unfairly punished by a CDC that seems more intent on scaring the public out of getting a vaccination than actually getting people vaccinated with some safety,” he said. “I bet J&J has a fantastic quarter and reveals an even better pipeline.”

Procter & Gamble

• Q3 2021 earnings release: before market; conference call: 8:30 a.m.
• Projected EPS: $1.19
• Projected revenue: $17.97 billion

“The Street’s actually worried about this one. First, there are tough comparisons versus the stay-at-home numbers they were putting up a year ago,” the host said. “Second, they’re coping with real inflation from plastics to surfactants [and] freight.”

Netflix

• Q1 2021 earnings release: 4 p.m.; conference call: 6 p.m.
• Projected EPS: $2.97
• Projected revenue: $7.14 billion

“This should be fun. Netflix typically beats the numbers and the principals always seem to have a great time talking about their business,” he said. “Even the Netflix conference call has good content.”

Verizon

• Q1 2021 earnings release: 7:30 a.m.; conference call: 8:30 a.m.
• Projected EPS: $1.29
• Projected revenue: $32.47 billion

“I’m beginning to believe it’s stuck there, making it feel like more of a bond than a stock,” Cramer said. “If you’ve gotta own a phone company, I have to tell you I prefer T-Mobile.”

Lam Research

• Q3 2021 earnings release: after market; conference call: 5 p.m.
• Projected EPS: $6.61
• Projected revenue: $3.72 billion

“Lam is the answer to the semiconductor shortage—they make the equipment needed to manufacture new chips,” he said. “When you hear Taiwan Semi endlessly talking about raising its capital equipment budget, that means that Lam is going to make a fortune.”

Chipotle

• Q1 earnings release: 4:10 p.m.; conference call: 4:30 p.m.
• Projected EPS: $4.89
• Projected revenue: $1.75 billion

“I’m betting this paragon of great natural food and phenomenal customer service will blow the doors off the quarter, triggering another round of price target boosts as the analysts desperately try to play catch-up to the stock price,” the host said.

Union Pacific

• Q1 2021 earnings release: 8 a.m.; conference call: 8:45 a.m.
• Projected EPS: $2.06
• Projected revenue: $5.05 billion

“I think Union Pacific is going to tell a story of making more with less, meaning efficiency galore,” Cramer said.

Dow

• Q1 2021 earnings release: 6 a.m.; conference call: 8 a.m.
• Projected EPS: $1.12
• Projected revenue: $11.09 billion

“If PPG is any guide from last night, it should put up some amazing numbers, allowing the stock to break out to the $70s,” he said.

Danaher

• Q1 2021 earnings release: 6 a.m.; conference call: 8 a.m.
• Projected EPS: $1.76
• Projected revenue: $6.29 billion

“I can’t wait to see how well they’re doing,” the host said. “I expect a fantastic quarter.”

Nucor

• Q1 2021 earnings release: TBD; conference call: 2 p.m.
• Projected EPS: $3.05
• Projected revenue: $7.18 billion

“We’re in an inflationary era, whether it’s transitory or whether it’s not, so Nucor should put up some incredible numbers,” he said.

Intel

• Q1 2021 earnings release: after market; conference call: 5 p.m.
• Projected EPS: $1.14
• Projected revenue: $17.78 billion

“I think Pat’s doing a terrific job inspiring people both inside and outside this great institution,” Cramer said. “If the stock gets hit, I’d be a buyer. Gelsinger can’t turn the Intel battleship on a dime, but it will be turned.”

Boston Beer

• Q1 2021 earnings release: 4 p.m.; conference call: 5 p.m.
• Projected EPS: $2.55
• Projected revenue: $477 million

“I think the shorts will be leaning against Boston Beer, as they always do, because of the [spiked seltzer] competition,” he said. “My view? The category’s growing so rapidly, the parent of Sam Adams should do just fine, thank you.”

Honeywell

• Q1 2021 earnings release: before market; conference call: 8:30 a.m.
• Projected EPS: $1.80
• Projected revenue: $8.08 billion

“Honeywell’s becoming a software-as-a-building-service play, not to mention an incredible health care company. I think the numbers can go higher still,” Cramer said.

American Express

• Q1 earnings release: 7 a.m.; conference call: 8:30 a.m.
• Projected EPS: $1.61
• Projected revenue: $9.21 billion

“It’s all about gauging the power of the great reopening. With its combination of small business … credit, travel and entertainment lines, we should be able to get a good read on the strength of the recovery going forward,” he said.

Disclosure: Cramer’s charitable trust owns shares of Abbott Laboratories, Union Pacific and Honeywell.

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