HSDT - Why Is Sprout Social (SPT) Stock Down 32% Today?
2024-05-03 08:37:48 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Sprout Social (NASDAQ: SPT ) stock is falling on Friday after the social media management company announced earnings results for the first quarter of 2024 .
Holding back Sprout Social stock this morning is its revenue of $96.78 million. That didn’t reach Wall Street’s estimate of $97.2 million for the quarter. This is despite it increasing 29% from the $75.21 million reported in the same period of the year prior.
That’s unfortunate, as the company’s adjusted EPS came in at 10 cents. That’s well above the flat earnings analysts were expecting and above the 6 cents per share reported in the first quarter of 2023.
Sprout Social Chief Financial Officer Joe Del Preto said this in the earnings report:
“We underestimated the magnitude of enterprise seasonality that now comes with our business mix, while also self-inducing sales execution headwinds during Q1 that we believe were important to position us for future success. We have factored Q1 underperformance and tightened strategic focus into our reduced 2024 revenue forecast, though we believe we’re now positioned for greater long- term success.”
SPT Stock Guidance 2024
Sprout Social’s outlook for 2024 includes adjusted EPS of 45 cents to 46 cents alongside revenue ranging from $405 million and $406 million. These are mixed next to Wall Street’s estimates of 23 cents per share and revenue of $425.57 million for the year.
SPT stock is down 32.2% as of Friday morning.
There are plenty more stock market stories worth reading about on Friday!
Luckily, we have them all ready to go without coverage of the market today. A few examples include what’s happening with shares of Vaxxinity (NASDAQ: VAXX ) and Helius Medical Technology (NASDAQ: HSDT ) stock today as well as the biggest pre-market stock movers this morning. You can dive into that news down below!
More Friday Stock Market News
- Why Is Vaxxinity (VAXX) Stock Up 39% Today?
- Why Is Helius Medical Technology (HSDT) Stock Up 47% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
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