Golf entertainment and gear company Callaway Golf Company (NYSE: CALY) will be reporting results this Tuesday after market hours. Here’s what you need to know.
Callaway Golf Company beat analysts’ revenue expectations last quarter, reporting revenues of $687.5 million, up 9.2% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Callaway Golf Company a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Callaway Golf Company’s revenue to be flat year on year, improving from the 2.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Callaway Golf Company’s peers in the consumer discretionary - leisure facilities segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AMC Entertainment delivered year-on-year revenue growth of 14.2%, beating analysts’ expectations by 8.7%, and Sphere Entertainment reported revenues up 11%, topping estimates by 1.8%. AMC Entertainment traded up 13.4% following the results while Sphere Entertainment was also up 2.2%.
Read our full analysis of AMC Entertainment’s results here and Sphere Entertainment’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the consumer discretionary - leisure facilities stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.4% on average over the last month. Callaway Golf Company is up 1% during the same time and is heading into earnings with an average analyst price target of $18.80 (compared to the current share price of $18.46).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
