Cramer's Mad Money - 19 Earnings To Watch In The Week Ahead (2/8/13)

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Friday February 8.

19 Earnings To Watch In The Week Ahead: Annie's (BNNY), Masco (MAS), Norwegian Cruise Line Holdings (NCLH), Avon (AVP), McGraw Hill (MHP), Michael Kors (KORS), Buffalo Wild Wings (BWLD), Tanger Factory Outlets (SKT), Federal Realty (FRT), Mine Safety Appliances (MSA), Mondelez (MDLZ), General Motors (GM), Pepsico (PEP), Jarden (JAH), Generac (GNRC), Whole Foods (WFM), Waste Management (WM), Enbridge (ENB), VFCorp (VFC). Other stocks mentioned: Hain Celestial (HAIN), Imax (IMAX), Hasbro (HAS), Herbalife (HLF).

Cramer discussed earnings reports for the coming week:

Monday

Annie's (BNNY): Investors should keep in mind that another natural foods play, Hain Celestial (HAIN), got hammered after its quarter, and Annie's has the added problem of a large number of shares sold short.

Masco's (MAS) call is accompanied by "bated breath" because it is a strong play on housing, especially post-Sandy.

Norwegian Holiday Cruise Line Holdings (NCLH) is in a "hot" sector; Cramer wants to see where NCLH fits into the general picture.

Tuesday

Avon (AVP): Direct selling has been under a lot of pressure, given the controversy over Herbalife (HLF). There are also questions about how much influence ex-CEO Andrea Jung has in management decisions; "Hopefully not much," said Cramer.

McGraw Hill (MHP) is an earnings call to listen to on the progress of government investigations into Standard and Poor's mortgage-backed bonds.

Michael Kors (KORS) is in the ultra high-end category, which is "smoking."

Buffalo Wild Wings (BWLD) might have done well because of the Superbowl. Wing prices are down, and gross margins might be up.

Tanger Factory Outlet Centers (SKT), Federal Realty (FRT) are both reporting, and are REITs that are "huge winners."

Wednesday

Mine Safety Appliances (MSA) might be the target of "merger mania." Cramer would look at the fundamentals and wouldn't recommend buying purely on a takeover basis.

Mondelez (MDLZ) has been a "rocket ship," and Cramer sold the stock for his charitable trust. He suggests investors take some off the table.

Whole Foods (WFM) has been stalled, but Cramer believes in management, store expansion and thinks WFM "is one of the best long-term plays out there."

Thursday

Generac (GNRC) is up 20% since the beginning of the year. There is some concern that Sandy drove the stock up, and there might be a selloff ahead of earnings.

General Motors (GM) should talk about China, Europe and when the government will sell its stake in the company.

Jarden (JAH) is a "knockout" that keeps taking aisle space and is a shareholder-friendly company.

Pepsico (PEP) has performed well; Cramer noted there has been some profit-taking.

Waste Management (WM) should discuss when it is going to have the REIT structure and might increase its dividend.

Friday

Enbridge (ENB) is one of the "most forward-looking companies out there," with its pipeline buildout, but it doesn't have the favor of the government.

VFCorp (VFC) management may discuss acquisitions.

Cramer took some calls:

Imax (IMAX) is dependent on its releases, and has had some obstacles. It might be a good idea to take profits in Imax.

Hasbro (HAS) reported a not-so-great quarter, but the stock rose on the announcement of a higher dividend. It might be a takeover target, and Cramer would buy.

Royal Caribbean (RCL), Carnival Corporation (CCL)

Cruise lines are a hot sector; this was demonstrated when Norwegian Holiday Cruise Lines spiked 30% the first day of its IPO in January and has been charging up since. Cramer would take profits, since he isn't comfortable with the amount of debt the company has. However, Cramer would consider other cruise stocks. He urged investors to buy the stocks on weakness after Carnival's Corporation's (CCL) tragedy last year with one of its ships. Since then, the stocks in the sector have been moving up.

Since the recession, cruise ship building slowed dramatically, and now there is higher supply than demand. In addition, given the expense of the ships, there are huge barriers to entry. The net yield, which is the most important metric in the cruise ship industry, is up for both Carnival and Royal Caribbean (RCL), which adds 7% earnings per share increase for both companies. With more customers booking online, the ease of finding customers is creating profits for RCL and Carnival. Cramer thinks both stocks are nearly in "the same performance boat," so which is the better stock to buy? Carnival is best-of-breed and has 48% market share. It also has a cleaner balance sheet than RCL and can pay a dividend of 2.6%. Carnival also hedges fuel costs, which is another advantage. RCL reported that bookings were up, and both companies are seeing improvement in Europe. Cramer thinks Carnival has a slight edge over RCL as a stock to buy.

CEO Interview: Mark Mason, Home Street (HMST)

Home Street (HMST) is a great way to play both the return of regional banks and housing. HMST has been lending for 90 years and has increased 150% since its IPO. In 2001, 69% of its revenues came from mortgages, but since the recession, it has put in place more rigorous lending standards. With a market cap of $400 million, HMST is a speculation, and is an "orphan" stock covered by only 2 analysts. HMST recently beat earnings by 24 cents and is returning 39.2% on equity while its peers are returning an average of 10%. CEO Mark Mason commented: "We've been one of the most efficient, most profitable and best quality originators in the business, and that continues today."

Mason reported that the net interest margin is growing, and has increased by 6 basis points, higher than the industry average; "We expect to grow the net interest margin by an excess of 325 to 340 basis points," said Mason. Home Street has become one of the most significant lenders in the home building business, and Mason sees demand for homes rising. The CEO indicated that the company might look for an acquisition to increase its geographical footprint. "Home Street can keep going higher," said Cramer.

CEO Interview: Kieran Gallahue, CareFusion (CFN). Other stock mentioned: Cardinal Health (CAH)

CareFusion (CFN) was spun off from Cardinal Health (CAH) in 2009, and has rallied 72% since. CFN's technology saves hospital staff time and decreases dangerous infections. One solution is creating disposable kits for all kinds of tests. The company beat earnings by 10% and reported a 160 basis point increase in gross margins. Management discussed a strong M&A pipeline. CEO Keiran Gallahue discussed that the flu season has given an "uptick" to CFN's business, and sees concerns about Obamacare and reducing hospital costs as potential catalysts; "We help hospitals be more efficient, help them drive out costs and help them improve patient safety." The spin-off from Cardinal Health has allowed the company to focus on technology, and CareFusion is beginning to reap the fruits after a bumpy transition. There was a slowdown in the dispensing business, but the infusion segment was strong. The CEO said the dispensing sector will be improved soon, because it is in transition with new technology. "I think you are going much higher," said Cramer.

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