Shares of Sprout Social (NASDAQ: SPT) tanked in pre-market trading at the time of publishing on Wednesday after the provider of cloud-based social media management software’s second-quarter revenue outlook came in below consensus estimates. The company expects Q2 revenues between $78.6 and $78.7 million, or up by 28% year-over-year but below consensus estimates of $79.89 million.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The company has projected an adjusted net loss of $0.02 per share while analysts are expecting the company to break even in Q2. In FY23, Sprout has projected revenues between $332 and $333 million while adjusted net income is likely to come between $0.07 and $0.08 per share, above consensus estimates of $0.04 per share.
In fiscal Q1, Sprout reported adjusted earnings of $0.06 per share versus a loss of $0.03 in the same period last year while analysts were expecting the company to incur a loss. The company’s Q1 revenues were $75.2 million, up by 31% year-over-year versus analysts’ expectations of $75.1 million.
Wall Street analysts, however, remain bullish about SPT stock with a Strong Buy rating based on nine Buys and two Holds.
