Topgolf Callaway (MODG) Q4 Earnings Report Preview: What To Look For

Anthony Lee /
2024/02/12 2:01 am EST

Golf entertainment and gear company Topgolf Callaway (NYSE:MODG) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter Topgolf Callaway reported revenues of $1.04 billion, up 5.3% year on year, missing analyst expectations by 0.8%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' revenue estimates.

Is Topgolf Callaway buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Topgolf Callaway's revenue to grow 1.9% year on year to $867.2 million, slowing down from the 19.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.33 per share.

Topgolf Callaway Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Topgolf Callaway's peers in the consumer discretionary segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Bowlero delivered top-line growth of 11.8% year on year, beating analyst estimates by 1.7% and Universal Technical Institute reported revenues up 45.6% year on year, exceeding estimates by 3.8%. Bowlero traded up 3.4% on the results, and Universal Technical Institute was up 4.2%.

Read our full analysis of Bowlero's results here and Universal Technical Institute's results here.

There has been positive sentiment among investors in the consumer discretionary segment, with the stocks up on average 4.5% over the last month. Topgolf Callaway is down 1.2% during the same time, and is heading into the earnings with analyst price target of $17.7, compared to share price of $13.8.

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