5 “Great” Earnings Reports Jim Cramer is Talking About

In this article, we will take a look at the 5 “great” earnings reports that Jim Cramer is talking about. If you want to explore similar stocks that Jim Cramer likes, you can go to 10 “Great” Earnings Reports Jim Cramer is Talking About.

5. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 84

Jim Cramer talked about Johnson & Johnson (NYSE:JNJ) and said that if the company was not going through litigation issues, its “stock would have soared after the quarter” since the company delivered “great” earnings. Cramer noted that the company’s medical devices segment performed “sharply better than expected”, however, he thinks that the company has to take care of its litigation issues as it can pressure its share price.

On April 18, Johnson & Johnson (NYSE:JNJ) announced earnings for the fiscal first quarter of 2023. The company’s revenue for the quarter grew by 5.63% year over year and amounted to $24.75 billion, outperforming Wall Street consensus by $1.15 billion. Johnson & Johnson (NYSE:JNJ) reported an EPS of $2.68 and beat expectations by $0.18.

84 hedge funds disclosed having stakes in Johnson & Johnson (NYSE:JNJ) at the end of Q4 2022. The total value of these stakes amounted to $5.57 billion. As of December 31, Bridgewater Associates is the largest shareholder in the company and has a stake worth $630 million.

4. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 100

JPMorgan Chase & Co. (NYSE:JPM) is one of the “great” earnings reports Jim Cramer is talking about. Cramer noted that the company has shown that “it can make money in any environment, including one with no investment banking”. As of May 12, JPMorgan Chase & Co. (NYSE:JPM) has returned 12.60% to investors over the past 12 months.

JPMorgan Chase & Co. (NYSE:JPM) announced market-beating earnings for the fiscal first quarter of 2023, on April 14. The company reported earnings per share of $4.10 and outperformed EPS consensus by $0.73. The company’s revenue for the quarter amounted to $38.35 billion, up 24.85% year over year and ahead of market estimates by $2.61 billion.

JPMorgan Chase & Co. (NYSE:JPM) was spotted on 100 investors’ portfolios at the close of Q4 2022. These funds disclosed positions worth $5.17 billion in the company. As of December 31, Greenhaven Associates is the most prominent investor in the company and has disclosed a position worth $643 million.

Giverny Capital made the following comment about JPMorgan Chase & Co. (NYSE:JPM) in its Q1 2023 investor letter:

“This quarter marked the end of our third year in business. It has been a wild ride – launching at the start of the pandemic, watching a bubble in low-quality stocks and cryptocurrencies inflate and deflate, and generally living with a high level of volatility. On April 14, our holding JPMorgan Chase & Co. (NYSE:JPM) announced nice earnings for the first quarter and the stock rose 7%. In a truly efficient market, the largest, best- managed bank in America would not rise or fall 7% on a single data point. Yet, we see it regularly.”

3. UnitedHealth Group Inc. (NYSE:UNH)

Number of Hedge Fund Holders: 110

On April 14, UnitedHealth Group Inc. (NYSE:UNH) delivered strong earnings for the fiscal first quarter of 2023. The company reported an EPS of $6.26 and beat EPS estimates by $0.18. The company’s revenue for the quarter grew by 14.70% year over year and amounted to $91.93 billion, ahead of market expectations by $2.15 billion.

Cramer talked about UnitedHealth Group Inc. (NYSE:UNH) and said that the company’s “numbers were terrific, and its forecast (was) strong”. UnitedHealth Group Inc. (NYSE:UNH) is one of the “great” earnings reports Jim Cramer is talking about.

UnitedHealth Group Inc. (NYSE:UNH) was a part of 110 investors’ portfolios at the end of Q4 2022. These funds held stakes worth $11.4 billion in the company. As of December 31, GQG Partners is the top investor in the company and has a position worth $2.1 billion.

RiverPark Advisors made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2023 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH): We re-initiated a position in UnitedHealthcare, a position we last held in January of 2022. The company’s stock price had fallen roughly 17% from its peak in October 2021 on fears about Medicare reimbursement rates, and we used this dislocation to start purchasing shares of what we believe to be the most dominant and complete managed care company in the industry.

With several at-scale and interconnected businesses, UNH occupies a unique position within the U.S. healthcare system. UnitedHealth has (a) a dominant managed care organization in commercial, Medicare and Medicaid markets, (b) a large and growing presence in local care delivery (OptumHealth’s physicians and ambulatory service centers), (c) one of only three at scale pharmacy benefits managers (OptumRx’s PBM) and (d) a fast-growing healthcare information technology (HCIT), consulting and revenue cycle management (RCM) business (OptumInsight). The combination of the largest MCO (UnitedHealth) with the faster-growing, higher-margin Optum services businesses positions the company to capture a large portion of the future growth opportunities in the U.S. healthcare services industry. We expect balanced growth from both health insurance and health services leading to consistent high-single-digit revenue growth for the company. With margin expansion from scale, share buybacks from its strong cash generating ability (the company currently has $30 billion in net cash), and continued strategic acquisitions, we believe the company can generate mid-teens or better earnings growth for the foreseeable future.

UNH shares were down slightly from where we re-initiated a position during the quarter, causing them to be a top detractor (-0.02%) in an overall strong quarter where few positions were down.”

2. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 177

Visa Inc. (NYSE:V) is one of the “great” earnings reports that Jim Cramer is talking about. He noted that the company “reported its usual strong results” and said that he would be a buyer of the stock as “its an amazing way to play the reversion to sanity in the fintech space”.

Visa Inc. (NYSE:V) delivered a market beating quarter. The company reported earnings for the fiscal second quarter of 2023, on April 25. The company reported earnings per share of $2.09 and outperformed EPS estimates by $0.10. The company’s revenue for the quarter amounted to $7.99 billion, up 11.07% year over year and ahead of Wall Street expectations by $194.11 million. Shares of Visa Inc. (NYSE:V) have gone up by 11.85% over the past 6 months, as of May 12.

Visa Inc. (NYSE:V) was held by 177 hedge funds at the end of Q4 2022. These funds held positions worth $22.4 billion in the company. As of December 31, TCI Fund Management is the top shareholder in the company and has a stake worth $4.1 billion.

Polen Capital made the following comment about Visa Inc. (NYSE:V) in its Q1 2023 investor letter:

“We trimmed Mastercard and Visa Inc. (NYSE:V) to equal weights of the Portfolio. Mastercard and Visa operate as a duopoly in a large and growing market. Over the last 50 years, global personal consumer expenditures (PCE) has grown 7-9% annualized. We expect 4-5% long-term PCE growth going forward. Additionally, the shift from cash to credit continues unabated, with a total credit penetration of only approximately 50% globally.3 This shift provides Visa and Mastercard with another ~4-6% of growth. When combined with PCE, this gives both companies high-single-digit to low-double[1]digit revenue growth opportunities. This growth estimate is before accounting for growth amplifiers like the acceleration of e[1]commerce, the shift from offline to online, and additional services. Both companies enjoy extremely strong network effects that provide strong competitive advantages.

We have trimmed Visa and Mastercard because their combined weight grew to over 12% of the Global Growth Portfolio because of their recent performance and to fund our increase in Amazon’s position size. We added to both positions when their prices were depressed due to cross-border transactions deteriorating materially from the pandemic. Cross-border volumes came roaring back when travel corridors reopened, and although we are several quarters removed from the cross-border nadir, Visa still grew volumes >30% in 1Q23. Total cross-border volumes are now 132% of 2019 levels. At 4.5% each, both companies remain high conviction positions for Global Growth.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

Cramer said that Microsoft Corporation (NASDAQ:MSFT) “stole the earnings season” and the company reported “great numbers across the board”. Cramer is bullish on the company’s AI initiatives and noted that it is “already using (AI) to generate games”. As of May 12, Microsoft Corporation (NASDAQ:MSFT) has returned 27.91% to investors over the past 6 months.

On April 25, Microsoft Corporation (NASDAQ:MSFT) reported strong earnings for the third quarter of fiscal 2023. The company generated a revenue of $52.86 billion, up 7.08% year over year and ahead of Wall Street consensus by $1.83 billion. The company reported an EPS of $2.45 and beat EPS expectations by $0.22.

259 hedge funds disclosed having stakes in Microsoft Corporation (NASDAQ:MSFT) at the close of the fourth quarter of 2022. The total value of these stakes amounted to $58.6 billion. As of December 31, Bill & Melinda Gates Foundation Trust is the dominant shareholder in the company and has a stake worth $9.1 billion.

Diamond Hill Capital made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:

“We did have several strong performing stocks this quarter. Our top contributors to return included NVR, Amazon, Alphabet, Microsoft Corporation (NASDAQ:MSFT) and Booking Holdings, all of which posted double-digit gains.

Shares of software and IT services provider Microsoft rallied as investors became less cautious about the potential for growth deceleration in Azure, its public cloud business, and more focused on opportunities in search after the company announced an investment in and long-term partnership with OpenAI, the company that developed ChatGPT. Microsoft’s net cash balance sheet also seemed to gain appreciation from investors who became more cautious about the economic cycle.”

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