CNBC’s “Mad Money” host Jim Cramer criticizes Supermicrocomputer SMCI Click here for recent business updates and preliminary first quarter results.
What happened: Cramer took to X to voice his opinion on the Super Micro’s performance. “Super Micro is much better at exonerating itself than it is selling itself,” said NVIDIA Corp. NVDA GPU, he wrote.
The tweet came after Supermicro released preliminary first-quarter financial results on Tuesday. The company expects revenue for the quarter to be between $5.9 billion and $6 billion, down from its previous guidance of $6 billion to $7 billion.
The company also expects adjusted earnings to be in the range of 75 cents to 76 cents per share, compared with its previous guidance of 67 cents to 83 cents per share. Gross profit margin for the first quarter is expected to be approximately 13.3%.
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Why it matters: Super Micro’s second-quarter revenue is expected to be between $5.5 billion and $6.1 billion, with adjusted earnings of 56 cents to 65 cents per share.
Supermicro’s financial credibility has been a concern for investors following significant governance issues. The company’s stock price plunged after the company’s independent auditor, Ernst & Young, resigned, citing governance and transparency concerns. Super Micro has been working on stabilization based on these issues.
Price Movement: Super Microcomputer Corporation closed at $27.70 on Tuesday, marking an increase of 6.42% on the day. Shares fell 15.88% in after-hours trading. The stock has declined 2.98% since the beginning of the year, according to data from Benzinga Pro.
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