Golf entertainment and gear company Topgolf Callaway (NYSE: MODG) will be announcing earnings results this Wednesday after the bell. Here’s what to expect.
Topgolf Callaway beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $1.09 billion, down 4.5% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations significantly.
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 $1.09 billion, a further deceleration from the 1.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 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 consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Hasbro’s revenues decreased 1.5% year on year, beating analysts’ expectations by 11.2%, and ThredUp reported revenues up 16.4%, topping estimates by 4%. Hasbro traded down 3.3% following the results.
Read our full analysis of Hasbro’s results here and ThredUp’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.5% on average over the last month. Topgolf Callaway is down 3.4% during the same time and is heading into earnings with an average analyst price target of $9 (compared to the current share price of $8.35).
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