CNBC's Jim Cramer on Thursday told investors not to get scared off when a company posts good earnings results but issues more modest guidance, as it doesn't always mean that management is worried about the future.
"Some money managers are dumbfounded when a very good company reports a very good quarter but then issues a very conservative forecast," Cramer said.
Sometimes, he said, it's worth it to hold on to a company with good earnings while others on Wall Street panic about guidance.
For the current quarter, Microsoft predicted revenue between $68.1 billion and $69.1 billion, while analysts surveyed by LSEG were hoping for $69.83 billion.
Despite the disappointing guidance, Cramer was appeased by management's explanation for the weaker guidance, particularly commentary from CFO Amy Hood.
Persons:
CNBC's Jim Cramer, Cramer, management's, LSEG, Amy Hood, Hood, she's
Organizations:
Microsoft