Cramer's week ahead: Retail earnings and consumer spending

Posted on 05/14/2021

CNBC’s Jim Cramer has a list of retail earnings reports circled on his calendar next week.
"Before you bet on which retailer's doing the best, you need to account where their stocks are coming from," the "Mad Money" host said.
While many retail stocks have made big gains, investors can shop for remaining opportunities, he said.

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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:

Monday: Lordstown Motor, Fisker earnings

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.

Tuesday: Walmart, Home Depot, Macy's, Take-Two Interactive earnings

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.

Wednesday: Lowe's, Target, TJX, Analog Devices, Cisco earnings

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."

Thursday: Kohl's, Ralph Lauren, Petco, Hormel, Applied Materials, Palo Alto Networks earnings

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.

Friday: Deere, VF Corp, Foot Locker earnings

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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