NYSE$CALY

Callaway Golf Company · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Callaway Golf Company's first quarter financial results were announced, revealing a record performance driven by strong demand and the Topgolf acquisition.

Callaway Golf Company reported record first-quarter financial results, with a 47% increase in net revenue to $652 million and a significant rise in net income to $272 million, boosted by the Topgolf acquisition and strong performance across its golf equipment and apparel segments.

  • Net revenue reached $652 million, a 47% increase compared to Q1 2020.
  • Net income soared to $272 million, a substantial increase from $29 million in Q1 2020.
  • Adjusted EBITDA increased by 113% to $128 million.
  • The Topgolf acquisition contributed $93 million to net revenue.

Headline financials

Total Revenue

$652M

Previous: $442M+47.3%
EPS (adj)

$0.62

Previous: $0.32+93.8%
Capital Expenditures

-$28.8M

Previous: -$17M-70.0%
Free Cash Flow

$244M

Previous: $11.9M+1940.4%
Net Income

$272M

Previous: $28.9M+843.0%
Operating Income

$76.1M

Previous: $40.7M+87.1%
Gross Profit

$76.1M

Previous: $196M-61.1%
Cash & Equivalents

$397M

Previous: $167M+138.4%
Total Assets

$7.11B

Previous: $2.14B+232.9%
Stock-Based Comp

$4.6M

Previous: $1.86M+147.2%

Revenue & EPS history

Topgolf Callaway · Revenue · Quarterly

$652M

Q1 2021+47.3%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Topgolf Callaway · $470M total across 2 segments · Q1 2021

  • Golf Equipment
    $377M
  • Topgolf
    $92.6M

Forward guidance

Callaway anticipates that revenue and Adjusted EBITDA for full year 2021 for the legacy Callaway business will exceed 2019 levels and for the Topgolf business will meet or exceed the full twelve-month 2019 levels.

Tailwinds

  • Legacy Callaway business revenue and Adjusted EBITDA are expected to exceed 2019 levels.
  • Topgolf business is expected to meet or exceed full twelve-month 2019 levels.
  • Golf equipment business is experiencing unprecedented demand.
  • Soft goods business is recovering from the pandemic faster than anticipated.
  • Available liquidity is at an all-time high.

Headwinds

  • Continued uncertainty related to the COVID-19 pandemic globally.
  • Unsettled market conditions.
  • Potential disruptions to business operations from regulatory restrictions.
  • Risk of production delays and supply chain issues.
  • Uncertainty regarding global economic conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.1%

Avg return

Earnings day

-1.6%

Avg return

5 days after

+1.5%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+18.7%

Q3 2013

Best reaction

-20.8%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+6.3%+0.1%
Q3 2025+14.4%+14.3%+24.2%
Q1 2025-17.2%-11.4%+0.0%
Q4 2024-0.3%-2.5%+3.0%
Q3 2024-11.3%-11.6%-17.1%
Q2 2024-14.5%-18.4%-27.1%
Q1 2024-8.2%-8.0%-7.6%
Q4 2023+5.6%+3.6%-6.3%
Q3 2023-20.8%-22.9%-1.6%
Q2 2023-9.8%-10.6%-12.6%
Q1 2023-13.9%-20.9%-11.4%
Q4 2022-4.0%-1.1%-6.6%
Q3 2022+5.5%+6.2%+23.6%
Q2 2022-2.0%-5.9%-5.8%
Q1 2022+8.1%+18.2%+22.2%
Q4 2021-9.6%-1.7%-10.9%
Q3 2021+2.0%+0.7%-2.9%
Q2 2021-4.2%-11.4%-16.7%
Q1 2021+8.9%+8.6%+14.9%
Q4 2020-2.3%-4.7%-1.6%
Q3 2020+5.5%-2.3%+34.6%
Q2 2020-6.9%-5.7%+2.9%
Q1 2020+2.8%-9.2%+28.4%
Q4 2019-6.7%-3.7%-38.3%
Q3 2019-1.5%-3.5%+1.2%
Q2 2019+10.6%+8.3%+5.3%
Q1 2019-5.2%-5.2%-6.9%
Q4 2018-4.2%-6.6%+3.6%
Q3 2018-2.5%-4.4%-12.3%
Q2 2018+13.1%+13.3%+18.7%
Q1 2018+7.5%+3.2%+13.8%
Q4 2017+3.6%+4.4%+8.8%
Q3 2017+3.4%+1.0%+0.1%
Q2 2017+7.1%+3.5%+9.2%
Q1 2017+7.7%+6.6%+7.8%
Q4 2016-8.4%-7.7%-7.5%
Q3 2016+11.5%+16.0%+18.1%
Q2 2016+0.1%+2.5%+9.3%
Q1 2016-0.6%
Q4 2015+4.6%
Q3 2015+7.5%
Q2 2015+8.0%
Q1 2015+0.6%
Q4 2014+4.9%
Q3 2014+12.1%
Q2 2014-8.5%
Q1 2014-7.7%
Q4 2013-6.4%
Q3 2013+18.7%
Q2 2013+6.1%
Q1 2013+3.7%
Q4 2012+0.2%
Q3 2012-7.6%
Q2 2012+3.7%
Q1 2011-12.2%
Q1 2012+5.5%
Q4 2009-0.3%
Q4 2011-0.3%
Q3 2011+2.0%
Q3 2010+2.0%
Q4 2010-1.4%
Q2 2011-1.4%
Q2 2010-1.4%
Q1 2010+0.6%

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