Hang in there, Wall Street. Friday is almost here.
Jim Cramer and ActionAlertsPlus.com research analyst Zev Fima are back to break down what it all means for your portfolio and what investors need to do next.
Time to Like Facebook?
Wednesday night, Facebook surged on a strong set of first quarter earnings. The social media giant reported earnings per share of 85 cents on revenues of $15.08 billion.
Almost as a footnote, Facebook also said it has set aside $3 billion as part of ongoing legal proceedings with the FTC, which impacted earnings. Despite the potential size of the fine, expected anywhere between $3 and $5 billion, Cramer doesn't seem worried.
Facebook Legal Woes =library fine— Jim Cramer (@jimcramer) April 25, 2019
Can Tesla Return to Profitability?
During its much-delayed and always Tweet-worthy earnings report, Tesla reported quarterly revenue of $4.54 billion and an adjusted loss of $2.90. Analysts polled by FactSet expected revenue of $5.42 billion and an adjusted loss of $1.15 per share.
Responding to analyst questioning during its earnings conference call, Tesla attributed the wider-than-expected-loss to changes in production and noted that the automaker plans to return to profitability in the third quarter of 2019.
Cramer isn't so confident that Tesla will deliver for investors, describing CEO Elon Musk as the "master deflector," and saying that Musk does whatever he can to throw analysts off during conference calls. "He is P.T. Barnum," Cramer said.
Recapping This Morning's Earnings
Cramer breaks down what some of the biggest earnings reports Thursday morning mean for the markets.
3M $MMM reports Q1 earnings:— TheStreet (@TheStreet) April 25, 2019
- Adjusted EPS of $2.23
- Sales of $7.9 billion
- Organic local-currency sales decline of 1.1 percent; China, automotive, and electronics collectively down mid-single digits
Comcast $CMCSA reports earnings:— TheStreet (@TheStreet) April 25, 2019
- EPS: 76 cents
- Revenue: $26.859 billion
Southwest $LUV reports earnings:— TheStreet (@TheStreet) April 25, 2019
- Net income & earnings per diluted share of $387 million & $0.70
- Operating revenues: $5.1 billion
- Operating margin: 9.8%
- Net margin: 7.5 percent
- Operating cash flow: $1.1 billion
- Free cash flow: $945 million
Editor's Note. Zev Fima, Action Alerts Plus Portfolio Analyst, is filling in for Cramer Live host Katherine Ross.