Exploring Sprout Social's Earnings Expectations
Sprout Social (NASDAQ:SPT) will release its quarterly earnings report on Wednesday, 2025-08-06. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Sprout Social to report an earnings per share (EPS) of $0.15.
The market awaits Sprout Social's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Historical Earnings Performance
In the previous earnings release, the company beat EPS by $0.07, leading to a 9.58% increase in the share price the following trading session.
Here's a look at Sprout Social's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.15 | 0.15 | 0.12 | 0.08 |
| EPS Actual | 0.22 | 0.19 | 0.13 | 0.09 |
| Price Change % | 10.0% | 3.0% | -14.000000000000002% | -12.0% |
Market Performance of Sprout Social's Stock
Shares of Sprout Social were trading at $16.73 as of August 04. Over the last 52-week period, shares are down 45.65%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Insights Shared by Analysts on Sprout Social
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Sprout Social.
Analysts have given Sprout Social a total of 2 ratings, with the consensus rating being Buy. The average one-year price target is $32.0, indicating a potential 91.27% upside.
Comparing Ratings with Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Yext, Bit Digital and Jamf Holding, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Yext, with an average 1-year price target of $9.56, suggesting a potential 42.86% downside.
- Analysts currently favor an Buy trajectory for Bit Digital, with an average 1-year price target of $7.0, suggesting a potential 58.16% downside.
- Analysts currently favor an Neutral trajectory for Jamf Holding, with an average 1-year price target of $15.57, suggesting a potential 6.93% downside.
Insights: Peer Analysis
The peer analysis summary outlines pivotal metrics for Yext, Bit Digital and Jamf Holding, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Sprout Social | Buy | 12.92% | $84.45M | -6.56% |
| Yext | Buy | 14.06% | $82.38M | 0.52% |
| Bit Digital | Buy | -17.38% | $12.31M | -13.38% |
| Jamf Holding | Neutral | 10.19% | $130.52M | 0.07% |
Key Takeaway:
Sprout Social ranks at the top for Revenue Growth among its peers. It is at the bottom for Gross Profit and Return on Equity.
Get to Know Sprout Social Better
Sprout Social Inc develops a cloud software that brings together social messaging, data and workflows in a unified system of record, intelligence, and action. It has a centralized, secure and powerful platform that can scale horizontally across an organization to drive maximum business value. The firm generates majority revenue from software subscriptions.
Understanding the Numbers: Sprout Social's Finances
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Sprout Social's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.92% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Sprout Social's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -10.27%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Sprout Social's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -6.56%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Sprout Social's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -2.63%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Sprout Social's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.21.
To track all earnings releases for Sprout Social visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
