Happy hump day!
Jim Cramer has a perfect example of why investors need to do their earnings homework before investing in a company, and his thoughts on Boeing (BA - Get Report) and Caterpillar (CAT - Get Report) post-earnings.
Did You Listen to That Earnings Call?
If you didn't, then you didn't do your homework.
In his Real Money column Wednesday morning, Cramer wrote about the need to do your homework after he listened to the Texas Instruments (TXN - Get Report) earnings call after the company released earnings Tuesday after the bell.
Here's what Cramer wrote:
If you listened to the conference call, though, which so few do, you would know that[Texas Instruments] business is anything but strong.
The company started the session by saying that revenue were down 9% this quarter because of the "broad-based weakness" that's out there. Then management talked about how their core business of analog revenue -- think about some of the mostbasic uses of chips, such as sensors -- was down 6%.
Do you really need more evidence that you need to do your due diligence before making trades?
Boeing reported earnings Wednesday morning before the bell.
Boeing reported a loss of $5.82 per share, compared to a profit of $3.33 per share over the same period last year, after booking a charge of nearly $5 billion linked to the grounding of its flagship 737 MAX aircraft, the company's most profitable plane.
The last time Boeing was brought up on TheStreet's Facebook Live show, Cramer felt confident about the stock. Does he still feel the same way? Here's what he's saying about the company post-earnings.
Real Money Stock of the Day Caterpillar also released earnings before the bell Wednesday. And boy, they weren't pretty if you're taking a look at what the Street was expecting from the company.
Caterpillar reported adjusted earnings of $2.83 per share, up just 1 penny from last year and well below the $3.11 analyst expectations.
"Sales and revenues increased this quarter, including a record performance from Construction Industries, which reflected our strong competitive position globally," said Jim Umpleby, CEO of Caterpillar. "Our strong operating cash flow in the quarter allowed us to repurchase shares and pay dividends of about $1.9 billion. This is in line with our intention to return substantially all free cash flow to shareholders."
Is Caterpillar just a victim of the U.S.-China trade war, or are there other issues? Cramer weighs in.