Sprout Social (SPT) Beats Q2 Earnings and Revenue Estimates

Core Viewpoint - Sprout Social reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and showing an increase from $0.09 per share a year ago, indicating a positive earnings surprise of +20.00% [1][2] Financial Performance - The company achieved revenues of $111.78 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.68% and up from $99.4 million year-over-year [2] - Over the last four quarters, Sprout Social has consistently exceeded consensus EPS estimates [2] Stock Performance - Sprout Social shares have declined approximately 47.2% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current Zacks Rank for Sprout Social is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $113.95 million, and for the current fiscal year, it is $0.73 on revenues of $451.89 million [7] - The trend of earnings estimate revisions prior to the earnings release was mixed, which may influence future stock performance [6] Industry Context - The Internet - Services industry, to which Sprout Social belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]