Latest news with #TopgolfCallaway
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
Yahoo
05-08-2025
- Business
- Yahoo
Topgolf Callaway (MODG) To Report Earnings Tomorrow: Here Is What To Expect
Golf entertainment and gear company Topgolf Callaway (NYSE:MODG) will be announcing earnings results this Wednesday after the bell. Here's what to expect. Topgolf Callaway beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $1.09 billion, down 4.5% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts' EPS estimates but full-year EBITDA guidance missing analysts' expectations significantly. 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 5.6% year on year to $1.09 billion, a further deceleration from the 1.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 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 four times over the last two years. Looking at Topgolf Callaway's peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Hasbro's revenues decreased 1.5% year on year, beating analysts' expectations by 11.2%, and ThredUp reported revenues up 16.4%, topping estimates by 4%. Hasbro traded down 3.3% following the results. Read our full analysis of Hasbro's results here and ThredUp's results here. There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.5% on average over the last month. Topgolf Callaway is down 3.4% during the same time and is heading into earnings with an average analyst price target of $9 (compared to the current share price of $8.35). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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
04-08-2025
- Business
- Yahoo
Topgolf Callaway, Clarus, Frontdoor, and Guess Stocks Trade Up, What You Need To Know
What Happened? A number of stocks jumped in the afternoon session after markets rebounded following a sharp sell-off in the previous trading session as weaker-than-expected U.S. jobs data fueled investor hopes for a potential interest rate cut by the Federal Reserve. The July Nonfarm Payrolls report revealed a gain of only 73,000 jobs, significantly below the 110,000 expected. Compounding the news, prior months' figures were revised downward by over 250,000 jobs. This data, indicating a cooling labor market, has led investors to dramatically increase bets on a September interest rate cut by the Federal Reserve, with the probability jumping to over 80% according to the CME FedWatch Tool. The prospect of lower borrowing costs typically stimulates economic activity and boosts consumer spending on non-essential goods and services, which directly benefits companies in the consumer discretionary space. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Leisure Facilities company Topgolf Callaway (NYSE:MODG) jumped 4.8%. Is now the time to buy Topgolf Callaway? Access our full analysis report here, it's free. Leisure Products company Clarus (NASDAQ:CLAR) jumped 3.2%. Is now the time to buy Clarus? Access our full analysis report here, it's free. Specialized Consumer Services company Frontdoor (NASDAQ:FTDR) jumped 3.3%. Is now the time to buy Frontdoor? Access our full analysis report here, it's free. Apparel and Accessories company Guess (NYSE:GES) jumped 3.9%. Is now the time to buy Guess? Access our full analysis report here, it's free. Zooming In On Topgolf Callaway (MODG) Topgolf Callaway's shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 6 days ago when the stock dropped 3.1% as the latest U.S. consumer confidence report revealed underlying weakness despite a headline increase, raising concerns about future spending. While the Conference Board's headline Consumer Confidence Index rose to 97.2 in July, the details painted a more cautious picture for investors. The Present Situation Index, a measure of consumers' assessment of current business and labor market conditions, actually fell. More telling for the sector, the report showed a decline in buying intentions for major discretionary items such as homes, cars, and most appliances. This combination of factors signals potential weakness in future consumer spending, casting a shadow over companies that rely on non-essential purchases. Topgolf Callaway is down 4.8% since the beginning of the year, and at $8.57 per share, it is trading 38.8% below its 52-week high of $14 from August 2024. Investors who bought $1,000 worth of Topgolf Callaway's shares 5 years ago would now be looking at an investment worth $433.94. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
04-08-2025
- Automotive
- Yahoo
Harley-Davidson Names New CEO as Motorcycle Maker's Shakeup Continues
Key Takeaways Harley-Davidson named Topgolf Callaway executive Artie Starrs as its new CEO, replacing Jochen Zeitz. The struggling motorcycle maker is in the last year of its turnaround plan called "The Hardwire." Last week, Harley-Davidson announced it was selling a 10% stake in its financing unit to raise $1.25 billion in shakeup of Harley-Davidson (HOG) continued Monday as the struggling motorcycle maker named a new CEO. The company said that Artie Starrs would be taking over Oct. 1 from Jochen Zeitz, who announced his intention to resign this year after five years on the job. Zeitz will stay on through February 2026 as an advisor to help facilitate the transition. Starrs formerly served as CEO of Topgolf International, a subsidiary of golf products maker Topgolf Callaway Brands (MODG). Presiding Director Troy Alstead explained that Starrs' "track record of delivering top and bottom-line growth, combined with his experience in franchise driven industries, are both huge assets for Harley-Davidson at this time in the Company's history." Starrs moves into the position as Harley-Davidson finishes up its five-year turnaround plan called "The Hardwire," which it noted was aimed at "targeting long-term profitable growth and shareholder value, and aiming to enhance its position as the most desirable motorcycle brand in the world." The hiring came days after the company agreed to sell a 10% stake in its financing division, which is expected to raise $1.25 billion. It plans to use that cash to reduce debt, invest in operations, and return money to shareholders. Shares of Harley-Davidson were little changed in recent trading. They've lost more than 20% of their value this year. Read the original article on Investopedia Sign in to access your portfolio
Bloomberg
04-08-2025
- Automotive
- Bloomberg
Harley-Davidson Hires Topgolf Head as Motorcycle Maker's New CEO
Harley-Davidson Inc. appointed the head of Topgolf Artie Starrs to be the motorcycle manufacturer's new chief executive officer. Starrs, who ran the golf entertainment division of Topgolf Callaway Brands Corp., will start his new role on Oct. 1, according to a statement Monday.
