Cramer's lightning round: Give AT&T one more quarter

U.S. Private Sector Job Growth Slows More Than Expected In October

Private sector employment in the U.S. increased by much less than expected in the month of October, according to a report released by payroll processor ADP on Wednesday.

ADP said private sector employment rose by 365,000 jobs in October after spiking by an upwardly revised 753,000 jobs in September.

Economists had expected private sector employment to surge by 650,000 jobs compared to the jump of 749,000 jobs originally reported for the previous month.

“The labor market continues to add jobs, yet at a slower pace,” said Ahu Yildirmaz, vice president and cohead of the ADP Research Institute. “Although the pace is slower, we’ve seen employment gains across all industries and sizes.”

The report said employment in the service-providing sector spiked by 348,000 jobs, while employment in the goods-producing sector edged up by 17,000.

Employment at mid-sized businesses climbed by 135,000 jobs, and employment at large and small businesses increased by 116,000 jobs and 114,000 jobs, respectively.

On Friday, the Labor Department is scheduled to release its more closely watched report on employment in the month of October.

Employment is expected to increase by about 600,000 jobs in October after climbing by 661,000 jobs in September. The unemployment rate is expected to edge down to 7.7 percent from 7.9 percent.

MercadoLibre Posts Profit In Q3; Stock Up

MercadoLibre Inc. (MELI) reported third-quarter net income of $15.04 million or $0.28 per share, compared to a loss of $146.08 million or $2.96 per share in the previous year.

MELI closed Wednesday’s regular trading at $1,315.69, up $99.83 or 8.21 percent. In the after-hours trade, the stock further gained $25.11 or 1.91 percent.

Quarterly net revenues were $1.12 billion, a year-over-year increase of 85.0% in USD and 148.5% on an FX neutral basis. Commerce revenues increased 109.3% year-over-year in USD reaching $724.5 million, while Fintech revenues increased 52.3% year-over-year in USD reaching $391.2 million.

Analysts polled by Thomson Reuters expected the company to report a profit of $0.17 per share and revenues of $972.31 million. Analysts’ estimates typically exclude special items.

Total payment volume through Mercado Pago reached $14.5 billion, a year-over-year increase of 91.7% in USD and 161.2% on an FX neutral basis. Total payment transactions increased 146.6% year-over-year, totaling 559.7 million transactions for the quarter.

Gross merchandise volume reached $5.9 billion, representing an increase of 62.1% in USD and 117.1% on an FX neutral basis.

EARNINGS SUMMARY: Details of Liberty Global Inc. Q3 Earnings Report

Below are the earnings highlights for Liberty Global Inc. (LBTYA):

-Earnings: -$973.6 million in Q3 vs. $587.2 million in the same period last year.
-Revenue: $2.95 billion in Q3 vs. $2.84 billion in the same period last year.

Qualcomm’s Big Win in Q4

When Qualcomm Inc. (NASDAQ: QCOM) reported fiscal fourth-quarter financial results after markets closed Wednesday, the fabless semiconductor maker said that it had $1.45 in earnings per share (EPS) and $6.5 billion in revenue, compared with consensus estimates that called for $1.17 in EPS and revenue of $5.94 billion. The same period of last year reportedly had EPS of $0.78 on $4.8 billion in revenue.

Management noted that this quarter demonstrated that Qualcomm’s investments in 5G are coming to fruition and showing benefits in its licensing and product businesses. The company concluded the year with exceptional fourth quarter results and it is well positioned for growth in 2021 and beyond.

In terms of its segments, Qualcomm reported:

  • QCT revenues increased 38% year over year to $4.97 billion, with earnings before taxes (EBT) of $1.02 billion.
  • QTL revenues increased 30% to $1.51 billion, with EBT of $1.11 billion.

On the books, cash, cash equivalents, and marketable securities totaled $11.2 billion at the end of the quarter, versus $12.3 billion at the end of the previous fiscal year.

Looking ahead to the fiscal first quarter, the company expects to see EPS in the range of $1.95 to $2.15 and revenue between $7.8 billion and $8.6 billion. Consensus estimates call for $1.68 in EPS and $7.13 billion in revenue for the coming quarter.

Qualcomm stock closed Wednesday at $128.97, in a 52-week range of $58.00 to $132.42. The consensus price target is $131.90. Following the announcement, the stock was up nearly 6% at $136.35 in the after-hours session.

Cramer's lightning round: Give AT&T one more quarter

  • It's that time again! "Mad Money" host Jim Cramer rings the lightning round bell, which means he's giving his answers to callers' stock questions at rapid speed.

Bloom Energy: "Way too speculative for me. If we're doing power management, I'll do Generac on the power side, I'll do Eaton on the management side, not Bloom — too dicey.

Magnite: "I think that's just a pure spec. … You can go to these outfits now and get a fraction of a share. I am urging you, rather than go that way, buy a fraction of a share in Alphabet, which is Google. They are crushing it. They are like the Lakers."

Oracle: "I think Oracle's fine. I prefer Salesforce."

AT&T: "Let's give it one more quarter, and then we can buy. I need to see one more quarter to see what that balance sheet looks like."

Disclosure: Cramer's charitable trust owns shares of Salesforce and Alphabet.

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