Jim Cramer, the host of CNBC's "Mad Money," has criticized Super Micro Computer Inc (NASDAQ:SMCI) for its recent business update and preliminary first-quarter results.
What Happened: Cramer took to X to express his views on Super Micro's performance. "Super Micro is so good at exonerating itself, better than it is selling," NVIDIA Corp (NASDAQ:NVDA) GPUs, he wrote.
Super Micro is so good at exonerating itself, better than it is selling Nvidia gpus!
— Jim Cramer (@jimcramer) November 5, 2024
The tweet comes after Super Micro provided its preliminary first-quarter results on Tuesday. The company expects to report revenue of $5.9 billion to $6 billion for the quarter, a decrease from its previous guidance of $6 billion to $7 billion.
The company also anticipates adjusted earnings of 75 cents to 76 cents per share, compared to its previous guidance of 67 cents to 83 cents per share. The first-quarter gross margin is expected to be around 13.3%.
Why It Matters: Super Micro's second-quarter revenue is projected to be between $5.5 billion and $6.1 billion, with adjusted earnings of 56 cents to 65 cents per share.
Super Micro's financial credibility has been a concern for investors following significant governance issues. The company's shares plunged after its independent auditor, Ernst & Young, resigned due to governance and transparency concerns. Super Micro has been working to stabilize in the wake of these challenges.
Price Action: Super Micro Computer Inc. closed at $27.70 on Tuesday, marking a gain of 6.42%, for the day. In after-hours trading, the stock dropped 15.88%. Year to date, the stock is down 2.98%, according to data from Benzinga Pro.
