Sprout Social (NASDAQ:SPT) Announces Earnings Results, Misses Estimates By $0.35 EPS

Sprout Social (NASDAQ:SPT) posted its quarterly earnings data on Tuesday. The company reported ($0.20) earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.35), Zacks reports. The business had revenue of $107.09 million during the quarter, compared to the consensus estimate of $106.74 million. Sprout Social had a negative net margin of 17.24% and a negative return on equity of 40.94%. Sprout Social updated its FY 2025 guidance to 0.650-0.740 EPS and its Q1 2025 guidance to 0.140-0.160 EPS.

Sprout Social Price Performance

SPT opened at $28.09 on Thursday. Sprout Social has a 12-month low of $25.05 and a 12-month high of $64.91. The company has a market cap of $1.61 billion, a price-to-earnings ratio of -23.41 and a beta of 1.06. The stock has a fifty day simple moving average of $31.73 and a two-hundred day simple moving average of $30.54. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.19.

Insider Buying and Selling

In other news, Director Karen Walker sold 5,000 shares of the firm’s stock in a transaction dated Monday, January 13th. The stock was sold at an average price of $30.26, for a total transaction of $151,300.00. Following the completion of the transaction, the director now owns 30,665 shares in the company, valued at $927,922.90. This trade represents a 14.02 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Ryan Paul Barretto sold 13,465 shares of the company’s stock in a transaction on Tuesday, December 3rd. The shares were sold at an average price of $31.45, for a total transaction of $423,474.25. Following the sale, the chief executive officer now directly owns 546,343 shares in the company, valued at approximately $17,182,487.35. The trade was a 2.41 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 120,265 shares of company stock worth $3,837,006 in the last 90 days. Insiders own 10.97% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on SPT shares. The Goldman Sachs Group reduced their price objective on Sprout Social from $34.00 to $29.00 and set a “neutral” rating on the stock in a research note on Wednesday. Piper Sandler reduced their target price on Sprout Social from $29.00 to $27.00 and set a “neutral” rating on the stock in a report on Wednesday. Oppenheimer dropped their price objective on Sprout Social from $40.00 to $38.00 and set an “outperform” rating on the stock in a research note on Tuesday, December 3rd. Needham & Company LLC cut their price target on shares of Sprout Social from $55.00 to $32.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Jefferies Financial Group increased their price objective on Sprout Social from $34.00 to $42.00 and gave the stock a “buy” rating in a report on Monday, February 3rd. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and seven have given a buy rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $34.08.

Sprout Social Company Profile

Sprout Social, Inc designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action.