Golf entertainment and gear company Topgolf Callaway (NYSE:MODG) will be announcing earnings results tomorrow after market close. Here’s what you need to know.
Topgolf Callaway missed analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $1.16 billion, down 1.9% year on year. It was a softer quarter for the company, with underwhelming earnings guidance for the full year and revenue guidance for next quarter missing analysts’ expectations.
Is Topgolf Callaway a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Topgolf Callaway’s revenue to decline 5.6% year on year to $981.8 million, a reversal from the 5.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Topgolf Callaway has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Topgolf Callaway’s peers in the leisure facilities segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bowlero delivered year-on-year revenue growth of 14.4%, beating analysts’ expectations by 4.3%, and Planet Fitness reported revenues up 5.3%, topping estimates by 2.5%. Bowlero traded up 11.9% following the results while Planet Fitness was also up 12.7%.
Read our full analysis of Bowlero’s results here and Planet Fitness’s results here.
There has been positive sentiment among investors in the leisure facilities segment, with share prices up 6.4% on average over the last month. Topgolf Callaway is down 11.9% during the same time and is heading into earnings with an average analyst price target of $15.60 (compared to the current share price of $9.37).
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