Latest news with #MODG
Yahoo
07-08-2025
- Business
- Yahoo
Why Topgolf Callaway Rallied Today
Key Points Topgolf Callaway beat revenue and earnings expectations last night. The declines in its Topgolf segment are lessening thanks to some pricing and strategy adjustments. The company still intends on spinning off Topgolf, but it may not happen until next year. 10 stocks we like better than Topgolf Callaway Brands › Shares of golf giant Topgolf Callaway (NYSE: MODG) rallied 8.8% on Thursday. The company delivered earnings last night that beat expectations across the board. Investors may also be looking forward to the spinoff of Topgolf, even though it may be pushed into next year in light of the unit CEO's resignation. Better-than-expected strength across the business In the second quarter, Topgolf Callaway saw revenue decline slightly by 4.1% to $1.11 billion, with adjusted (non-GAAP) earnings per share down 45.2% to $0.24. While results were down, they also reflected the divestiture of the company's Jack Wolfskin apparel business. Moreover, both figures came in ahead of analyst expectations as results got "less bad." The core golf equipment business was down just 1.4%, and Topgolf, which had been a bigger problem, was down "only" 1.2%, as new price cuts seemed to work in spurring traffic. CEO Chip Brewer noted: These results reflect continued consumer strength in our golf equipment business, the benefits from our gross margin and cost savings initiatives across each segment of our business, as well as the success of Topgolf's value initiatives, which have significantly improved traffic and sales trends in the venues. We are also pleased that these results, along with current trends, are allowing us to absorb the increased tariffs this year and increase our full year outlook for our ongoing businesses. Investors seemed to be particularly enthusiastic about Topgolf's improvements. Even though revenue was down slightly in the quarter, management raised full-year guidance for the unit from a revenue decline of 6% to 12% to a narrower range of a 6% to 9%. Management also raised the low end of the company's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) range, perhaps alleviating some concerns over worst-case scenarios. Topgolf is an interesting special situation ahead of next year's spinoff While still seeing revenue declines, Topgolf stock remains close to 75% below its 2021 highs. After that much of a decline, the stock had gotten quite cheap, and was perhaps ripe for a rally off any news of improvements. The company is still pursuing the spinoff of 80% of the Topgolf segment, which Callaway acquired back in 2021 and could perhaps "unlock" value by optimizing each unit's capital structures. While the spinoff was supposed to happen later this year, Topgolf's CEO announced his resignation on July 31, and will stay on through September to transition a new leader. In that light, the company said it now expects the spinoff to be pushed to early 2026. Even though the stock has rallied recently and is a bit risky, Topgolf Callaway could still be a value play if the spinoff goes well and consumer demand stabilizes. Should you invest $1,000 in Topgolf Callaway Brands right now? Before you buy stock in Topgolf Callaway Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Topgolf Callaway Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool recommends Topgolf Callaway Brands. The Motley Fool has a disclosure policy. Why Topgolf Callaway Rallied Today was originally published by The Motley Fool
Business Insider
12-07-2025
- Business
- Business Insider
CFRA Sticks to Their Hold Rating for Topgolf Callaway Brands (MODG)
In a report released today, Zachary Warring from CFRA maintained a Hold rating on Topgolf Callaway Brands, with a price target of $9.00. The company's shares closed today at $8.86. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Warring is a 3-star analyst with an average return of 5.5% and a 53.85% success rate. Warring covers the Consumer Cyclical sector, focusing on stocks such as Ralph Lauren, Abercrombie Fitch, and American Eagle. Topgolf Callaway Brands has an analyst consensus of Hold, with a price target consensus of $8.06, which is a -9.03% downside from current levels. In a report released on July 9, Texas Capital Securities also initiated coverage with a Hold rating on the stock with a $8.00 price target. Based on Topgolf Callaway Brands' latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $1.09 billion and a net profit of $2.1 million. In comparison, last year the company earned a revenue of $1.14 billion and had a net profit of $6.5 million Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MODG in relation to earlier this year. Last month, Adebayo Ogunlesi, a Director at MODG bought 383,701.00 shares for a total of $2,479,317.31.
Yahoo
06-06-2025
- Business
- Yahoo
Was Jim Cramer Right About Topgolf Callaway Brands Corp. (MODG)?
We recently published a list of . In this article, we are going to take a look at where Topgolf Callaway Brands Corp. (NYSE:MODG) stands against other stocks that Jim Cramer discusses. A caller asked Cramer about Topgolf Callaway Brands Corp. (NYSE:MODG), hoping for a rebound in the stock. At the time, Cramer had lost patience with Callaway and recommended another retail stock instead. He replied: 'You know, I keep thinking it's going to move up… and you know what I've decided? Just better play it with Dick's. Dick's has got golf. Dick's has better run. I'm going with Dick's.' Cramer was right to not support the stock as it's down -60.65% since. A group of happy golfers basking in the warm sun on a golf course. Topgolf Callaway Brands Corp. (NYSE:MODG) is a golf and active lifestyle company that owns Callaway Golf and operates Topgolf, a social entertainment venue combining sports, dining, and gaming. Overall, MODG ranks 4th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of MODG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-06-2025
- Business
- Yahoo
1 of Wall Street's Favorite Stock with Exciting Potential and 2 to Avoid
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it's worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover. At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here is one stock where Wall Street's excitement appears well-founded and two where its enthusiasm might be excessive. Consensus Price Target: $2.92 (24.6% implied return) Based in Long Island City, Altice USA (NYSE:ATUS) is a telecommunications company offering cable, internet, telephone, and television services across the United States. Why Do We Pass on ATUS? Performance surrounding its broadband subscribers has lagged its peers Sales were less profitable over the last five years as its earnings per share fell by 27.4% annually, worse than its revenue declines Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders Altice is trading at $2.34 per share, or 0.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than ATUS. Consensus Price Target: $8.42 (40.1% implied return) Formed between the merger of Callaway and Topgolf, Topgolf Callaway (NYSE:MODG) sells golf equipment and operates technology-driven golf entertainment venues. Why Should You Sell MODG? Weak constant currency growth over the past two years indicates challenges in maintaining its market share Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 22.6% annually Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results Topgolf Callaway's stock price of $6.01 implies a valuation ratio of 2.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including MODG in your portfolio, it's free. Consensus Price Target: $349.20 (14.8% implied return) Founded in 2014 and named after the dreaded first day of the work week, (NASDAQ:MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently. Why Is MNDY a Good Business? ARR trends over the last year show it's maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability Prominent and differentiated software culminates in a best-in-class gross margin of 89.5% MNDY is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders At $304.18 per share, trades at 12.5x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Topgolf Callaway Q1 Earnings Surpass Estimates, Revenues Fall Y/Y
Topgolf Callaway Brands Corp. MODG reported first-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top line declined year over year, while the bottom line declined from the prior-year quarter's the quarter, the company stated benefits from cost reduction and margin enhancement initiatives. It announced an agreement to divest its Jack Wolfskin business. Management emphasized that this move will enable MODG to sharpen its focus on core operations, improve resource allocation and strengthen both its balance sheet and liquidity. Looking ahead, management remains optimistic about maintaining full-year revenues and adjusted EBITDA guidance. This outlook is supported by a strong start to the year, favorable currency trends, and ongoing efforts to manage costs and offset tariff-related pressures. Despite market uncertainties, the company believes it is well-positioned to deliver long-term shareholder value through strategic execution, operational focus and key portfolio realignments. For the quarter under review, the company reported an adjusted earnings per share (EPS) of 11 cents, beating the Zacks Consensus Estimate of 4 cents. In the prior-year quarter, the company reported an adjusted EPS of 8 cents. Topgolf Callaway Brands Corp. price-consensus-eps-surprise-chart | Topgolf Callaway Brands Corp. Quote Total revenues of $1.09 billion beat the consensus estimate by 3.1%. However, the top line declined 4.5% year over year. Topgolf: Revenues of this segment amounted to $393.7 million, down 6.8% from the reported value of $422.8 million in the year-ago quarter. The segment's operating loss came in at $11.9 million against an income of $2.9 million reported in the prior-year quarter. The downside can be attributed to lower same-venue sales (down 12% year over year). Segment-adjusted EBITDA came in at $43.9 million compared with $59.8 million reported in the prior-year quarter. The downside was due to a decline in same-venue sales, partially offset by cost reduction Equipment: Revenues of this segment amounted to $443.7 million, down 0.3% from $449.9 million reported in the prior-year quarter. The segment's operating income came in at $101.6 million compared with $82.1 million reported in the prior-year quarter. The upside was driven by improved gross margin performance, the favorable impact of cost savings initiatives and a lease termination incentive for our Japan subsidiary. Active Lifestyle: Revenues of this segment amounted to $254.9 million, down 4.7% from the reported value of $271.5 million in the year-ago quarter. The decline can be attributed to the strategic downsizing of the Jack Wolfskin business in Europe. However, this was partially offset by growth in the China market. The segment's operating income came in at $30.6 million compared with $24.7 million reported in the prior-year quarter. During the first quarter of 2025, the company's total costs and expenses amounted to $1.03 billion compared with $1.08 billion reported in the prior-year period. Adjusted net income during the quarter came in at $20.3 million compared with $14.4 million reported in the prior-year quarter. Adjusted EBITDA during the quarter came in at $167.3 million compared with $160.9 million reported in the prior-year quarter. As of March 31, 2025, MODG's cash and cash equivalents amounted to $317 million compared with $445 million as of Dec. 31, 2024. The company's long-term debt (as of March 31) was $1.455 billion, almost flat sequentially. For the second quarter of 2025, the company expects revenues to be in the range of $1.075-$1.115 billion. It expects adjusted EBITDA to be in the range of $139-$159 million. In 2025, the company anticipates revenues to be in the range of $4-$4.19 billion. Topgolf revenues are expected to come in between $1.68 billion and $1.79 billion, compared to the previous estimate of $1.725 billion to $1.835 billion. Same venue sales growth for Topgolf is now projected to decline between 6% and 12%, compared with a prior expectation of a mid-single-digit decline. The company expects consolidated adjusted EBITDA to be in the range of $415-$505 million. Topgolf Callaway currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Norwegian Cruise Line Holdings Ltd. NCLH reported first-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the top and bottom lines decreased on a year-over-year in the quarter were hurt by a 2% decline in Capacity Days, stemming from a higher number of Berths out of service due to larger ships undergoing dry-dock, as well as a strategic move to reduce passenger air participation rates. For 2025, Norwegian Cruise anticipates occupancy to be approximately 102.5% compared with the prior guidance of 103.4% and Capacity Days to be about 24.545 Resorts International MGM reported first-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines declined from the prior-year quarter's remains optimistic about the outlook for the rest of 2025, supported by strong forward bookings and expectations for record hotel performance in April on the Las Vegas Strip. MGM Resorts stated progress on the $200 million EBITDA enhancement plan and expects more than $150 million to be realized in Entertainment, Inc. CZR reported mixed first-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. Nonetheless, both the top and bottom lines improved on a year-over-year Entertainment's first-quarter performance was driven by record results in the Digital segment. Growth in the regional segment, supported by recently opened properties, and solid performance in Las Vegas, despite a tough comparison to last year's Super Bowl period, also aided the quarter's performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MGM Resorts International (MGM) : Free Stock Analysis Report Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report Topgolf Callaway Brands Corp. (MODG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
