Topgolf Callaway Brands (NYSE:MODG) is preparing to release its quarterly earnings on Tuesday, 2024-11-12. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Topgolf Callaway Brands to report an earnings per share (EPS) of $-0.16.
Anticipation surrounds Topgolf Callaway Brands's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Historical Earnings Performance
During the last quarter, the company reported an EPS beat by $0.14, leading to a 2.05% drop in the share price on the subsequent day.
Here's a look at Topgolf Callaway Brands's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 0.28 | 0 | -0.33 | 0.12 |
| EPS Actual | 0.42 | 0.09 | -0.30 | 0.20 |
| Price Change % | -2.0% | -7.000000000000001% | 12.0% | -17.0% |
Tracking Topgolf Callaway Brands's Stock Performance
Shares of Topgolf Callaway Brands were trading at $9.63 as of November 08. Over the last 52-week period, shares are down 13.21%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Opinions on Topgolf Callaway Brands
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Topgolf Callaway Brands.
Analysts have provided Topgolf Callaway Brands with 6 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $12.83, suggesting a potential 33.23% upside.
Analyzing Ratings Among Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Vista Outdoor, Malibu Boats and Latham Group, three major players in the industry, shedding light on their relative performance expectations and market positioning.
The consensus outlook from analysts is an Neutral trajectory for Vista Outdoor, with an average 1-year price target of $42.0, indicating a potential 336.14% upside. Malibu Boats received a Buy consensus from analysts, with an average 1-year price target of $46.0, implying a potential 377.67% upside. The prevailing sentiment among analysts is an Buy trajectory for Latham Group, with an average 1-year price target of $6.58, implying a potential 31.67% downside. Summary of Peers Analysis
The peer analysis summary provides a snapshot of key metrics for Vista Outdoor, Malibu Boats and Latham Group, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Topgolf Callaway Brands | Neutral | -1.86% | $731.70M | 1.59% |
| Vista Outdoor | Neutral | 3.37% | $211.16M | 3.46% |
| Malibu Boats | Buy | -32.93% | $28.21M | -0.96% |
| Latham Group | Buy | -6.40% | $48.69M | 1.43% |
Key Takeaway:
Topgolf Callaway Brands ranks in the middle among peers for consensus rating. It is at the bottom for revenue growth and gross profit, while it is at the top for return on equity.
Get to Know Topgolf Callaway Brands Better
Topgolf Callaway Brands Corp is a modern golf and active lifestyle company that provides world-class golf entertainment experiences, designs and manufactures premium golf equipment, and sells golf and active lifestyle apparel and other accessories through brands such as, Topgolf, Callaway Golf, Odyssey, TravisMathew, Jack Wolfskin, OGIO and Toptracer. The company's reportable segments are; Topgolf, Golf Equipment and Active Lifestyle. Majority of the revenue is generated from its Topgolf segment which is predominantly comprised of service revenues and expenses from the company operated Topgolf venues, Toptracer ball-flight tracking technology, and WGT digital golf game. Geographically, majority of the revenue for the company is derived from United States.
Topgolf Callaway Brands's Economic Impact: An Analysis
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Challenges: Topgolf Callaway Brands's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -1.86%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Topgolf Callaway Brands's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 5.36%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Topgolf Callaway Brands's ROE excels beyond industry benchmarks, reaching 1.59%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Topgolf Callaway Brands's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.68% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.77, Topgolf Callaway Brands adopts a prudent financial strategy, indicating a balanced approach to debt management.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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