Earnings Movers, Bracing for Tesla's Q1 Results, Apple's iPhone Challenges in China. 4/23/24

Carl Quintanilla (0:00)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla, on the opening bell hour of CNBC Squawk on the Street.

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Futures are solid, and it's all about earnings today. As more than a dozen S&Pers either affirm or raise guidance, including GE, GM, Lockheed, Spotify, Raytheon, UPS, Danaher, Oil Below 81 doesn't hurt. A roadmap begins with an earnings ramp up. We mentioned some names, Pepsi as well.

All crossing the tape, we'll dig into the numbers.

David Faber (0:32)

Plus, Tesla is on deck. The shares, by the way, at a 15-month low. Investors, of course, are bracing for what could be the company's worst results in seven years.

And Apple's China concern, new data signaling, a 19% tumble in iPhone shipments that's in the country would be, if in fact it is the case, the worst performance in four years for Apple. China.

Carl Quintanilla (0:55)

Let's begin with earnings as the markets do look to extend yesterday's rebound rally, Jim. There's a lot of big industrials we can go to.

Jim Cramer (1:02)

Yeah, I mean, look, I know we can focus on Tesla. I want to focus on Mary Barra.

Mary Barra had an unbelievable quarter. I mean, and I say, when I say unbelievable, I mean, like they delivered on everything that she's been talking about. They only want to make cars that they make money on, cars and trucks.

They did a very, very good job. And we can talk forever about Elon Musk, because Elon Musk is fast Canadian, and Mary Barra is workman-like. But you know what, workman-like is what works when you're doing cars. And that raised guidance, David, was extraordinary.

David Faber (1:34)

As was the beat, frankly. How is it that the analysts miss it by that much?

Jim Cramer (1:41)

Well, I, what is that, rhetorical?

David Faber (1:44)

I know, I mean, I don't know. It just feels like that's not something that should be that far off when it comes to GM.

Jim Cramer (1:51)

Look, I agree. I mean, I was not modeling GM, but I was expecting her to crush it, just as I expected her for Ford to crush it. Because you see, they're ice, all right? They don't have to worry. You know, Jonas, okay, let's talk about Jonas.

Jonas said what's bad for Tesla is good for Ford and GM. So let's give him his due.

David Faber (2:06)

Okay, well, it is proving good, at least. We'll see how the stock opens, but right now it's looking up almost as much as 5%.

Again, on the numbers, and you pointed out yesterday, the buyback, which is not insignificant.

Jim Cramer (2:19)

And Ford better do a buyback, because Ford is just languishing with all this Bill Ford pays dividend. Carl, I don't want a dividend. Well, it's not maybe you got a good dividend, but I really want a buyback. Look at how much she sopped up.

She's very strong.

Carl Quintanilla (2:34)

Great stat out of Bespoke this morning.

In terms of, they call it a triple play, meaning you beat on the top line, beat on the bottom line and raise. GM's done it five or six quarters.

Jim Cramer (2:44)

Well, I mean, maybe because she's not having an existential crisis, we don't care.

David Faber (2:47)

I, you know, the multiple always is interesting.

Jim Cramer (2:51)

What do you mean the lowest in the S&P other than financials?

David Faber (2:53)

You know, just talk us through that, Jim. I mean, it's always been the case, or certainly for a very long period of time, this thing just does not get a serious multiple. You're talking about a company that's going to have adjusted, adjusted automotive free cash flow of a range now of eight and a half to 10 and a half billion dollars. Let's say they get to the, towards the top of that range.

Talking about starting the day at least with a $50 billion market cap. So five times adjusted automotive free cash flow.

Jim Cramer (3:21)

David, if you felt that the world was going toward ice and you, I mean, away from ice and toward EV, if you thought the state of California was gonna just end, end ice, which a lot of people think it might do, then what do you do with that company? That company is an ice oriented company.

David Faber (3:37)

Understood, but I mean, at this rate, in five years, they could buy back the entire company with their free cash flow.