Sprout Social (NASDAQ:SPT) Announces Quarterly Earnings Results, Beats Expectations By $0.16 EPS

Key Points

• Sprout Social beat quarterly expectations: EPS was $0.45, $0.16 above consensus, while revenue of $125.15 million topped estimates of $123.83 million.
• Shares fell 1.3% to $11.93 during Tuesday trading despite the earnings beat.
• Analyst views remain mixed, with a consensus Hold rating and an average price target of $10.88.

Sprout Social (NASDAQ:SPT - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.29 by $0.16, FiscalAI reports. The company had revenue of $125.15 million during the quarter, compared to analyst estimates of $123.83 million. Sprout Social had a negative net margin of 6.13% and a negative return on equity of 8.80%.

Sprout Social Trading Down 1.3%

Shares of SPT traded down $0.16 during mid-day trading on Tuesday, hitting $11.93. The company had a trading volume of 717,152 shares, compared to its average volume of 1,382,483. The stock has a market cap of $722.86 million, a PE ratio of -23.86 and a beta of 1.01. Sprout Social has a 1-year low of $4.92 and a 1-year high of $13.35. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.14. The business's 50-day simple moving average is $11.06 and its 200-day simple moving average is $8.27.

Insider Transactions at Sprout Social

In other Sprout Social news, insider Justyn Howard sold 40,000 shares of the firm's stock in a transaction dated Friday, October 9th. The stock was sold at an average price of $11.02, for a total value of $440,800.00. Following the transaction, the insider directly owned 7,417 shares of the company's stock, valued at $81,735.34. This trade represents a 84.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 51,612 shares of company stock valued at $573,757. 9.60% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

SPT has been the topic of several recent analyst reports. Stifel Nicolaus boosted their target price on shares of Sprout Social from $12.00 to $14.00 and gave the company a "buy" rating in a report on Wednesday, October 14th. Barclays raised their target price on shares of Sprout Social from $9.00 to $12.00 and gave the company an "overweight" rating in a report on Tuesday, August 11th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Sprout Social in a research report on Thursday, October 15th. Wall Street Zen raised Sprout Social from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 15th. Finally, KeyCorp raised their target price on Sprout Social from $6.00 to $7.00 and gave the company an "underweight" rating in a report on Friday, August 7th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $10.88.

About Sprout Social

Sprout Social, Inc is a software company that provides a cloud-based social media management platform for businesses and organizations. Its platform helps customers manage social media publishing, engagement, customer care, analytics, listening and employee advocacy from a centralized environment.

The company's products are designed to help marketing, communications, sales and customer service teams plan and publish content, monitor conversations, respond to audiences, evaluate social media performance and gain insights from online activity.

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