Earnings Preview For Topgolf Callaway Brands

Topgolf Callaway Brands MODG is gearing up to announce its quarterly earnings on Monday, 2025-05-12. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Topgolf Callaway Brands will report an earnings per share (EPS) of $-0.05.

The market awaits Topgolf Callaway Brands's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.09, leading to a 0.3% drop in the share price the following trading session.

Here's a look at Topgolf Callaway Brands's past performance and the resulting price change:

Market Performance of Topgolf Callaway Brands's Stock

Shares of Topgolf Callaway Brands were trading at $7.18 as of May 08. Over the last 52-week period, shares are down 51.99%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analysts' Take on Topgolf Callaway Brands

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Topgolf Callaway Brands.

Topgolf Callaway Brands has received a total of 2 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $9.0, the consensus suggests a potential 25.35% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Polaris, Latham Group and Malibu Boats, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Polaris, with an average 1-year price target of $39.33, suggesting a potential 447.77% upside.
• Analysts currently favor an Sell trajectory for Latham Group, with an average 1-year price target of $4.5, suggesting a potential 37.33% downside.
• Analysts currently favor an Neutral trajectory for Malibu Boats, with an average 1-year price target of $30.0, suggesting a potential 317.83% upside.

Analysis Summary for Peers

The peer analysis summary provides a snapshot of key metrics for Polaris, Latham Group and Malibu Boats, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Topgolf Callaway Brands ranks highest in revenue growth among its peers. However, it has the lowest gross profit margin and return on equity.

Unveiling the Story Behind Topgolf Callaway Brands

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.

Understanding the Numbers: Topgolf Callaway Brands's Finances

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Topgolf Callaway Brands's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 3.04%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -163.64%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Topgolf Callaway Brands's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -47.69%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Topgolf Callaway Brands's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -18.01%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Topgolf Callaway Brands's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.72, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Topgolf Callaway Brands visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.