## Topgolf Callaway Brands (MODG) Earnings Preview: What to Watch for on November 12th
Get ready for another earnings season showdown, as Topgolf Callaway Brands (MODG) is gearing up to release its quarterly financial results on Tuesday, November 12th. This announcement is sure to attract considerable investor attention, especially after the company’s recent performance.
Analysts are currently predicting an earnings per share (EPS) of -$0.16 for the quarter. While this might seem discouraging, investors are hoping for a potential upside surprise and positive guidance for the next quarter. Remember, while earnings are a crucial factor, market reactions often hinge on the company’s outlook and guidance for the future.
## Looking Back at Topgolf Callaway Brands’s Past Performance
To understand the potential for this upcoming release, let’s take a quick look at the company’s recent history. In the previous quarter, Topgolf Callaway Brands exceeded EPS estimates by $0.14, but this positive news was overshadowed by a 2.05% drop in share price the following day.
Here’s a summary of Topgolf Callaway Brands’s earnings performance over the past few quarters and the resulting price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | 0.28 | 0.42 | -2.0% |
| Q1 2024 | 0 | 0.09 | -7.00% |
| Q4 2023 | -0.33 | -0.30 | 12.0% |
| Q3 2023 | 0.12 | 0.20 | -17.0% |
## Analyzing Analyst Sentiment and Stock Performance
As of November 8th, Topgolf Callaway Brands’s shares were trading at $9.63. Over the past 52 weeks, the stock has experienced a decline of 13.21%, which might be a cause for concern for long-term shareholders. However, it’s important to consider the broader market landscape and the company’s overall trajectory.
To gain a deeper understanding of market expectations, let’s look at analyst opinions. Topgolf Callaway Brands has received 6 ratings from analysts, resulting in a consensus rating of Neutral. The average one-year price target stands at $12.83, suggesting a potential 33.23% upside.
## Comparing Topgolf Callaway Brands to Industry Peers
It’s also valuable to compare Topgolf Callaway Brands to its key competitors in the industry. Here’s a quick look at the analyst ratings and average 1-year price targets for Vista Outdoor, Malibu Boats, and Latham Group:
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside (%) |
|—|—|—|—|
| Vista Outdoor | Neutral | $42.0 | 336.14% |
| Malibu Boats | Buy | $46.0 | 377.67% |
| Latham Group | Buy | $6.58 | 31.67% |
## Key Takeaways from the Peer Analysis
The peer analysis reveals some interesting insights:
*
Consensus Rating:
Topgolf Callaway Brands falls in the middle ground among its peers, with a Neutral consensus rating.*
Revenue Growth:
When it comes to revenue growth, Topgolf Callaway Brands lags behind its competitors, with a decline of -1.86% over the past 3 months.*
Gross Profit:
Topgolf Callaway Brands also trails in gross profit, compared to Vista Outdoor.*
Return on Equity:
On the other hand, Topgolf Callaway Brands boasts a top-ranking return on equity (ROE), demonstrating its efficient use of shareholder equity capital.## Get to Know Topgolf Callaway Brands Better
Topgolf Callaway Brands Corp. is a leader in the golf and active lifestyle industry, offering a unique blend of entertainment, equipment, and apparel. Its portfolio includes well-known brands such as Topgolf, Callaway Golf, Odyssey, TravisMathew, Jack Wolfskin, OGIO, and Toptracer. The company’s business is divided into three segments: Topgolf, Golf Equipment, and Active Lifestyle. The Topgolf segment, generating the majority of the company’s revenue, focuses on service revenue from its popular venues, Toptracer ball-flight tracking technology, and the WGT digital golf game. Geographically, the United States accounts for the largest share of the company’s revenue.
## Topgolf Callaway Brands’s Financial Health: An In-Depth Look
Here are some key financial metrics to consider:
*
Market Capitalization:
Topgolf Callaway Brands’s market capitalization is below industry averages, indicating a smaller scale relative to its competitors.*
Revenue Growth:
As mentioned earlier, the company has experienced recent challenges with revenue growth, showing a decline of -1.86% over the past 3 months.*
Net Margin:
Despite the revenue challenges, Topgolf Callaway Brands stands out for its impressive net margin, which surpasses industry averages, highlighting its strong profitability and cost management practices.*
Return on Equity (ROE):
The company’s ROE of 1.59% signifies robust financial management and efficient use of shareholder equity capital.*
Return on Assets (ROA):
Topgolf Callaway Brands’s ROA surpasses industry standards, showcasing exceptional financial performance.*
