Cramer's Mad Money Recap: Ford, Stanley Black & Decker

Great companies posting great earnings are still getting hit if they aren't part of the reopening trade, Jim Cramer says.
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Companies aren't getting credit for putting up great results this earnings season, Jim Cramer told his Mad Money viewers Wednesday. Unless you're part of the reopening trade, investors just don't seem to care.

That was the case with Ford Motor  (F) - Get Report Wednesday, as shares dipped 3.1% after the company slashed forecasts in response to the ongoing chip shortage.

To find out more, Cramer spoke with Jim Farley, CEO of Ford, who said Ford is on the right path forward and he's excited about the direction it's headed.

When asked about Ford's strength in small, commercial vehicles, Farley explained that for most small businesses, it comes down to choice. One size truck does not fit everyone, which is why they offer a variety of vehicles to meet every need.

As for the chip shortage, Farley said initial estimates predicted the shortfall would affect between 10% and 20% of their production. The final number came in at 17%, or about 200,000 units. Farley expects the second quarter will be the trough and he's optimistic for the second half of the year.

Never vehicles continue to drive the momentum at Ford, Farley added. Their new electric Mustang Mach-e is completely sold out, while their new F-150 pickups are sitting on the lot for less than 25 days.

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Executive Decision: Stanley Black & Decker

For his second "Executive Decision" segment, Cramer also spoke with Jim Loree, CEO of Stanley Black & Decker  (SWK) - Get Report, the toolmaker that delivered incredible earnings that included 45% organic sales growth.

Loree said sales this quarter were "off the charts," with 41% growth in North America, 47% in Europe and an 80% increase in the UK. He said what started as a stay-at-home spike has evolved into a long-term trend as people are investing more in their homes.

Loree added that 10% to 12% growth would be considered normal in their business, which makes the current environment even more remarkable. He noted that technology is also helping to boost sales. Never before has more DIY information been available on platforms like YouTube, which makes it easy to learn and follow along with common repairs and upgrades.

Stanley Black & Decker isn't sitting idly by, however. The company is investing in the business, hiring engineers and retail associates to spur innovation and accelerate growth.

Executive Decision: Yum! Brands

For his second "Executive Decision" segment, Cramer also spoke with David Gibbs, CEO of Yum! Brands  (YUM) - Get Report, the restaurant chain that just posted a 20-cents-a-share earnings beat with a 9% increase in same-store sales.

Gibbs said Yum Brands has adapted incredibly well to the pandemic and has embraced digital ordering and delivery, which helped spur $5 billion in digital orders this quarter across its brands.

Yum has been making investments into technology and operations for years, Gibbs explained, and now the pandemic has greatly compressed a transformation that would have taken years into just months. Yum has the unprecedented ability to scale, he added, and that's why things like ordering via social media have caught on so quickly.

Gibbs was also excited about Habit Burger, a recent acquisition of 300 locations that he felt could support more than 10,000 stores someday. He said like all of Yum's brands, Habit is emerging from the pandemic stronger than when it entered and he's confident about its future.

Executive Decision: Salesforce.com

For his final "Executive Decision" segment, Cramer checked in Marc Benioff, CEO of Salesforce.com  (CRM) - Get Report, a company answering the call to help stop the pandemic.

Benioff said that while no one can do everything, everyone can do something. He reiterated that business is the greatest platform for change, which is why Salesforce is picking up the phone and putting its technology to work wherever it's needed. The company has built applications for the CDC and is actively using its Work.com platform to facilitate company reopening and contact tracing.

Benioff also helped facilitate the delivery of personal protective equipment, filling 747's with supplies and sending them to New York City during the height of the pandemic. Since then, Benioff has sent planes to Chicago, Detroit, San Francisco and London. The latest plane is currently being filled for India, as that country faces a devastating wave of new COVID cases.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Don't Blame the Sellers

In his "No Huddle Offense" segment, Cramer reminded viewers that the market gets really stupid during the heart of earnings season. Case in point, Microsoft  (MSFT) - Get Report and Advanced Micro Devices  (AMD) - Get Report, which fell 2.8% and 1.4% on spectacular earnings.

Then there's Spotify  (SPOT) - Get Report, which fell 12.3%. Cramer said there was nothing wrong with Spotify's results either. Even Starbucks  (SBUX) - Get Report didn't deserve to be down as much as it was.

Don't blame the sellers though, blame the gauntlet. This is the 72-hour period when trigger-happy traders have but mere minutes to make decisions while the earnings reports come in fast and furious.

This is the time the market gets it wrong, Cramer said, as we saw with these four terrific stocks.

Lightning Round

Here's what Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Wednesday evening:

Plug Power  (PLUG) - Get Report: "If you believe in hydrogen power, then Plug is the winner. I don't like those accounting issues though. Any accounting irregularity equals sell."

Coinbase  (COIN) - Get Report: "I think the stock can head higher. "

Leslie's LESL: "I'll see Leslie and raise you with Pool Corp  (POOL) - Get Report which is the better company."

Ocugen  (OCGN) - Get Report: "This is a heavily shorted meme stock. I don't know what's going on there."

Inovio Pharmaceuticals  (INO) - Get Report: "That's a speculative stock that hasn't delivered."

Kellogg  (K) - Get Report: "I think you should not own Kellogg. Mondelez International  (MDLZ) - Get Report is a better play."

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At the time of publication, Cramer's Action Alerts PLUS had a position in AMD, FB, AAPL, GOOGL, MSFT, SBUX.