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Investing.com - Cantor Fitzgerald maintained its Neutral rating and $24.00 price target on Sprout Social Inc . (NASDAQ:SPT), currently trading at $15.26, following the company’s second-quarter earnings results that exceeded expectations. According to InvestingPro data, the stock has declined nearly 50% over the past six months, with seven analysts recently revising their earnings estimates upward for the upcoming period.
Sprout Social delivered a revenue beat of $1.1 million in the second quarter, with operating profit margin 110 basis points better than expected. The company also reported strong additions of large customers during the period, maintaining impressive gross profit margins of 77.6% in the last twelve months.
The social media management platform provider recently closed its acquisition of Newswhip last week, which contributed to the company raising its full-year 2025 guidance. The updated outlook incorporates most of the second-quarter outperformance along with approximately $2.5 million in revenue and breakeven operating income impact from Newswhip in the second half of the year.
Cantor Fitzgerald noted that Sprout Social is gaining momentum in the enterprise and mid-market segments with multi-product sales, as evidenced by current remaining performance obligations growing 17.6% year-over-year. The company’s expanded platform functionality is also contributing to growth.
Despite these positive developments, the research firm remains cautious, citing increased seasonal importance of fourth-quarter performance as the company focuses more on larger customers. Cantor Fitzgerald indicated it would maintain its neutral stance until seeing evidence of topline growth reacceleration. InvestingPro analysis suggests the stock is currently undervalued, with multiple additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of SPT and 1,400+ other US stocks.
In other recent news, Sprout Social Inc. reported its second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share of $0.18, which was higher than the forecasted $0.15, representing a 20% surprise. Revenue also exceeded projections, reaching $111.8 million compared to the anticipated $110.93 million. These results indicate strong financial performance for the quarter. Despite the positive earnings and revenue, the stock experienced a slight decrease in after-hours trading. There were no significant mergers or acquisitions reported. Additionally, there have been no recent analyst upgrades or downgrades for Sprout Social. Investors will likely keep an eye on future developments following these recent announcements.
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