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3 Cuts And You're Out? Jim Cramer on Jerome Powell, AMD and General Electric

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Jim Cramer has some thoughts on Jerome Powell, AMD (AMD) and General Electric (GE)

AMD Earnings

Real Money stock of the day AMD posted earnings after the bell Tuesday night.

For the quarter, adjusted earnings per share came in at 18 cents, in line with Wall Street expectations. Revenue was $1.8 billion, just below analyst's estimates of $1.809 billion. Computing and Graphics revenue, the company's largest segment, was $1.28 billion, beating estimates of $1.127 billion and rising 36%. Enterprise Embedded and Semi-Custom revenue was $525 million, down 27% and missing estimates of $695 million.

"High expectations appear to be sparking some profit-taking," said Eric Jhonsa, ThesStreet's tech columnist. "Soft console processor demand is clearly a headwind for AMD in the near-term, ahead of next year's console launches. But its PC and server CPU businesses are both doing quite well."

For the quarter, gross margin was 43%, better than the 40% in the year-ago quarter and in line with Wall Street's estimate, reported TheStreet's Jacob Sonenshine.

General Electric Earnings

General Electric released earnings before the bell Wednesday morning.

The company announced or completed some $9 billion in "total industrial deleveraging actions" during the quarter. It also reduced external debt at GE Capital by $1 billion. That helped to, in part, offset losses in its aviation unit, where general and equipment orders fell thanks to Boeing's (BA) ongoing grounding of its 737 MAX jet, which uses GE engines.

"We are encouraged by our strong backlog, organic growth, margin expansion, and positive cash trajectory amidst global macro uncertainty," Culp said in a statement. "We are raising our industrial free cash flow outlook again even with external headwinds from the 737 MAX and tariffs, and we are holding our adjusted EPS outlook despite reduced income from moving Baker Hughes to discontinued operations."

GE's closely watched free cash flow (FCF), which is used as a gauge of efficiency, came in at $650 million. The company raised its 2019 forecast for industrial FCF to a range of flat to $2 billion, up from a range of between negative and plus $1 billion, reported TheStreet's M. Corey Goldman.

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