Golf entertainment and gear company Topgolf Callaway (NYSE: MODG) will be reporting results tomorrow afternoon. Here’s what investors should know.
Topgolf Callaway beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $924.4 million, up 3% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations and EBITDA 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 6.6% year on year to $1.07 billion, a further deceleration from the 2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.06 per share.
Analysts covering the company have generally 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 five times over the last two years.
Looking at Topgolf Callaway’s peers in the leisure facilities segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Live Nation’s revenues decreased 11% year on year, missing analysts’ expectations by 2.8%, and Planet Fitness reported revenues up 11.5%, falling short of estimates by 1.2%. Live Nation traded up 1.9% following the results while Planet Fitness was down 8.8%.
Read our full analysis of Live Nation’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 9% on average over the last month. Topgolf Callaway is up 17.8% during the same time and is heading into earnings with an average analyst price target of $8.73 (compared to the current share price of $7.44).
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