Cramer On Why He Expects Big Retailers To Smash Earnings Estimates

Big box retailers are scheduled to report earnings, and CNBC's Jim Cramer said he expects "unbelievably positive" results. 

Walmart Inc WMT and Home Depot Inc HD reported Tuesday.

Target Corporation TGT and Lowe's Companies Inc LOW are set to report Wednesday. 

Busy Earnings Period: Walmart, Target, Home Depot and Lowe's are likely to show their resilience in the face of the COVID-19 pandemic, Cramer said on Monday's "Mad Money."

These companies were likely market share winners in the quarter as they took sales away from struggling mom-and-pop shops that were ill-equipped to compete against the major chains, he said. 

"If any of these big-box outfits disappoint when they report this week, remember this could be the last quarter where they actually face significant independent competition funded by PPP," Cramer said. "After that, the small guys are mostly done."

'Horrifying' Reason Why Results Are Good: Big retailers and major restaurant chains are expected to report "fabulous" results, and it is good news for their shareholders, Cramer said. But at the same time it is "horrifying" to understand the logic behind the market domination, the CNBC host said. 

Big chains, unlike small stores and family-owned restaurants, have access to the necessary financial resources to weather the COVID-19 storm, Cramer said. Small competitors were left relying on government assistance and are "being wiped out," he said. 

"A lot of these smaller outfits had been able to hold their own before COVID, but now the big guys have crafted phenomenal same-day delivery services." 

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Photo courtesy of Target.