Golf entertainment and gear company Topgolf Callaway (NYSE:MODG) will be announcing earnings results tomorrow after the bell. Here's what investors should know.
Topgolf Callaway missed analysts' revenue expectations by 1.1% last quarter, reporting revenues of $1.14 billion, down 2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but full-year revenue guidance 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 be flat year on year at $1.19 billion, slowing from the 5.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 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 three times over the last two years.
Looking at Topgolf Callaway's peers in the leisure facilities segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Life Time delivered year-on-year revenue growth of 18.9%, beating analysts' expectations by 5.2%, and Live Nation reported revenues up 7%, in line with consensus estimates. Life Time traded up 7.5% following the results while Live Nation was also up 1.6%.
Read our full analysis of Life Time's results here and Live Nation's results here.
Investors in the leisure facilities segment have had steady hands going into earnings, with share prices flat over the last month. Topgolf Callaway's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $20.2 (compared to the current share price of $14.5).
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