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NEW YORK ( TheStreet) -- This earnings season has nothing to do with earnings, Jim Cramer told "Mad Money" show viewers Monday. It's all about expectations. Cramer said the roller-coaster action investors are seeing in some stocks has nothing to do with a company's revenue or earnings, but rather with the expectations management has set going into the quarter. Case in point: Caterpillar ( CAT), a stock Cramer has been buying up for his charitable trust,
Executive DecisionIn the "Executive Decision" segment, Cramer spoke with Scott Wine, CEO of Polaris Industries ( PII), makers of snowmobiles, off-road vehicles and motorcycles. Polaris delivered a 13-cents-a-share earnings beat on a strong 20% rise in revenue. Shares of Polaris are up 32% since Cramer first featured the company in January. Wines said that Polaris relies on a strong economy to perform well, which is why he's closely watching the U.S. election for clarity on the "fiscal cliff," rising taxes and above all, increased regulations. He said with major changes in any of those areas Polaris may have difficulty delivering the strong results it has been seeing. Beyond politics, Wine credited innovation for Polaris' strong results. He said the company spends 4% of revenue on innovation, which has yielded a strong pipeline of new products that customers really enjoy. Wine said whether it's a vehicle for recreation or a utility vehicle for a home, farm or business, Polaris simply has the vehicle to meet customers' needs.
When asked how those customers are finding the money to purchase their vehicles, Wine said that about two-thirds buy on credit and the other third typically buys using cash. Many customers have trade-ins, however, which help offset costs. Cramer said Polaris continues to deliver for shareholders and he remains bullish on the stock.
Bullish About the FutureIn his second "Executive Decision" segment, Cramer spoke with Jack Hartung, CFO of Chipotle Mexican Grill ( CMG), a stock down over 200 points after the company reported two disappointing quarters in a row with single-digit same-store sales growth. Hartung said Chipotle continues to see value in its stock price, which is why the company is opportunistically buying shares as part of a $100 million buyback program. He said the company has $22 million of that buyback remaining but has also just authorized a second $100 million as well. Hartung said Chipotle couldn't be more bullish over its long-term future as it only has 1,350 restaurants so far, but the opportunity to build thousands more. Plus, Chipotle's Asian Kitchen concept is gearing up to open a second location in Washington, DC, and one in Los Angeles and the company is only beginning an expansion in Europe. Hartung said Chipotle is still delivering pretty good results considering the U.S. economy. Most of the company's declines are from food price inflation and not from customers dining any less. Hartung noted that while some business lunches have been curtailed and others have cut back on drinks and sides, overall just as many customers are visiting as before. When asked about competition from Taco Bell, Hartung noted that customers are smart enough to know the difference in their food. He said customers can see Chipotle's food being made fresh in their open kitchen, while that's not the case at Taco Bell. Cramer said that while Chipotle has clearly lost its momentum, at just 22 times earnings, the stock is once again representing a real value.
Lightning RoundIn the Lightning Round, Cramer was bullish on Lions Gate Entertainment ( LGF), UnitedHealth Group ( UNH), Aetna ( AET), Accenture ( ACN), Berkshire Hathaway ( BRK.B) and Hartford Financial Services ( HIG).
Cramer was bearish on Cognizant Technology ( CTSH) and Dell ( DELL).