Jim Cramer Live 01/28/19: Jim's Thoughts on Caterpillar's Quarter and Nvidia

Monday, Jan. 28 kicked off a busy week of earnings.

Here's what Jim Cramer's watching in the markets.

00:08 Caterpillar Gets Bulldozed
Caterpillar posted weaker-than-expected fourth quarter earnings Monday and forecast a "modest" in increase in 2019 sales, sending shares in the industrial equipment marker sharply lower in pre-market trading, TheStreet's Martin Baccardax reported.

The company is Real Money's stock of the day.

Adjusted earnings for the three months ending in December came in at $2.55 per share, Caterpillar said, up 16% from the same period last year but well shy of he Street consensus of $2.98. Group revenues, Caterpillar said, rose 11% to $14.34 billion and were largely in-line with the consensus forecast. Caterpillar said it expects 2019 profit to increase to a range of $11.75 to $12.75 per share, compared to the Refinitiv consensus forecast of $12.73 per share.

"In 2018, Caterpillar achieved record profit per share and returned significant levels of capital to shareholders," said CEO Jim Umpleby. "Our global team remained focused on serving our customers, executing our strategy and investing for future profitable growth."

https://www.thestreet.com/investing/earnings/caterpillar-q4-misses-estimates-forecasts-modest-increase-in-2019-sales-14846695

05:09 Nvidia's Weak Guidance
Nvidia shares traded sharply lower Monday after the chipmaker cautioned that quarterly revenues would fall far short of analysts forecasts following weaker-than-expected demand for its gaming and datacenter products and slowing growth in China, Baccardax reported.

Nvidia said sales for the three months ending in January, its fiscal fourth quarter, would come in at $2.2 billion compared to earlier guidance of $2.7 billion. The company also said GAAP and non-GAAP margins would be hit by charges of around $120 million, adding that after a number of deals failed to close over the final months of the year.

"Q4 was an extraordinary, unusually turbulent, and disappointing quarter," said CEO Jensen Huang. "Looking forward, we are confident in our strategies and growth drivers."The foundation of our business is strong and more evident than ever - the accelerated computing model Nvidia pioneered is the best path forward to serve the world's insatiable computing needs."

Cramer discussed his "legendary" call from his previous teach-in, where he correctly called that Nvidia would miss its quarter.

https://www.thestreet.com/investing/earnings/nvidia-plunges-after-chipmaker-cautions-on-q4-revenues-citing-weak-china-demand-14847085

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