Jim Cramer Critiques Super Micro Computer's Earnings Performance

Jim Cramer, the host of CNBC’s “Mad Money,” has recently expressed his discontent with Super Micro Computer Inc (SMCI) regarding its latest business update and preliminary first-quarter results.

What Happened: Cramer shared his thoughts on social media platform X, stating, "Super Micro is so good at exonerating itself, better than it is selling," especially when discussing the sale of NVIDIA Corp (NVDA) GPUs.

Recent Performance Overview

The critique by Cramer followed Super Micro's release of its preliminary first-quarter results on a recent Tuesday. The company now expects quarterly revenue to range between $5.9 billion and $6 billion, which is a reduction from its earlier forecast of $6 billion to $7 billion.

Moreover, Super Micro projects adjusted earnings per share to be between 75 cents and 76 cents, slightly improved from its previous estimate of 67 cents to 83 cents. The company's expected gross margin for the first quarter is approximately 13.3%.

Future Projections

Why It Matters: Looking ahead, Super Micro forecasts its second-quarter revenue to be between $5.5 billion and $6.1 billion, with adjusted earnings anticipated to be between 56 cents and 65 cents per share.

Concerns about Super Micro’s financial integrity have risen among investors, especially following governance issues. The company's stock took a significant hit when its independent auditor, Ernst & Young, resigned due to concerns about governance and transparency. Super Micro has been actively working to recover stability following these challenges.

Market Reaction

Price Action: After the updates, Super Micro Computer Inc. concluded the trading day at $27.70, reflecting a gain of 6.42%. However, its stock saw a decline of 15.88% in after-hours trading. Since the beginning of the year, the stock has faced a drop of 2.98%, according to market data.

Cramer, Earnings, SuperMicro