Jim Cramer Criticizes Super Micro Computer's Earnings Report

Jim Cramer, the well-known host of CNBC’s "Mad Money," has openly criticized Super Micro Computer Inc (SMCI) for its latest business update and preliminary first-quarter results.

What Happened: In a recent post on X, Cramer shared his views on Super Micro's performance, stating, "Super Micro is so good at exonerating itself, better than it is selling Nvidia GPUs!" This comment has gained attention as it reflects the frustration among investors regarding the company's sales figures.

On November 5, 2024, the company announced its preliminary first-quarter results, revealing that it expects to report revenue ranging from $5.9 billion to $6 billion. This outlook is a decline from their prior guidance, which projected revenues between $6 billion and $7 billion.

Additionally, Super Micro anticipates adjusted earnings per share (EPS) to fall between 75 cents and 76 cents, down from the earlier forecast of 67 cents to 83 cents. The gross margin for the first quarter is expected to hover around 13.3%, further indicating potential weaknesses in profitability.

Why It Matters: Looking ahead, Super Micro projects its second-quarter revenue to be between $5.5 billion and $6.1 billion, with adjusted earnings of 56 cents to 65 cents per share. These forecasts have raised eyebrows among analysts and shareholders alike.

Investors remain concerned about Super Micro’s financial credibility due to significant governance issues the company has faced. The situation worsened when the company’s independent auditor, Ernst & Young, resigned, citing governance and transparency concerns, which fueled uncertainty around the company's financial dealings. In response, Super Micro has been taking steps to stabilize its operations and improve investor confidence.

Price Action: On the trading day when the news broke, Super Micro Computer Inc. stock closed at $27.70, gaining 6.42%. However, in after-hours trading, the stock experienced a significant decline, dropping 15.88%. Year-to-date, the stock is down approximately 2.98%, reflecting ongoing volatility.

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Cramer, SuperMicro, Earnings