NYSE$CALY

Callaway Golf Company · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Topgolf Callaway Brands reported first quarter results, with revenue in line with expectations and earnings exceeding expectations. The company reaffirmed its full-year Adjusted EBITDA guidance and increased its full-year earnings per share and cash generation outlook.

Topgolf Callaway Brands reported Q1 2024 revenue of $1.144 billion, which was in line with expectations. Net income was $7 million, and non-GAAP net income was $16 million, both exceeding expectations. The company reaffirmed its full-year Adjusted EBITDA guidance and increased its full-year earnings per share and cash generation outlook.

  • Q1 Revenue of $1.144 billion and Topgolf same venue sales of -7% – both in line with expectations.
  • Net Income of $7 million, Non-GAAP Net Income of $16 million and Adjusted EBITDA of $161 million – all ahead of expectations.
  • Company reaffirmed full year Adjusted EBITDA guidance and increased full year earnings per share and cash generation outlook.
  • Ai Smoke clubs achieved #1 U.S. market share in Driver, Fairway Woods and Irons and the new Chrome Tour golf balls drove record 11% market share in the premium ball category.

Headline financials

Total Revenue

$1.14B

Previous: $1.17B-2.0%
EPS (adj)

$0.09

Previous: $0.17-47.1%
Capital Expenditures

-$65.4M

Previous: -$121M+46.1%
Free Cash Flow

-$58.9M

Previous: -$96.4M+38.9%
Net Income

$6.5M

Previous: $25M-74.0%
Operating Income

$66.9M

Previous: $80.5M-16.9%
Gross Profit

$66.9M

Previous: $80.5M-16.9%
Cash & Equivalents

$234M

Previous: $181M+29.5%
Total Assets

$9.09B

Previous: $8.94B+1.7%
R&D Expense

$23.2M

No prior period
Stock-Based Comp

$13.1M

Previous: $12.4M+5.6%

Revenue & EPS history

Topgolf Callaway · Revenue · Quarterly

$1.14B

Q1 2024-2%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Topgolf Callaway · $1.04B total across 3 segments · Q3 2023

  • Topgolf
    $448M+8.2%
  • Active Lifestyle
    $300M+7.7%
  • Golf Equipment
    $293M-1.1%

Forward guidance

The Company’s updated outlook reflects increased foreign currency headwinds, and higher levels of inventory at retail and softer market conditions in Europe negatively impacting the Jack Wolfskin business. Despite these headwinds, the Company is maintaining its Adjusted EBITDA outlook. The Company is also increasing its earnings per share expectations by $0.05 cents per share to reflect the repricing of its term loan, planned repayment of $50 million in term loan debt and improved cash flow.

Tailwinds

  • Company is maintaining its Adjusted EBITDA outlook.
  • Company is increasing its earnings per share expectations by $0.05 cents per share to reflect the repricing of its term loan
  • Company is increasing its earnings per share expectations to reflect planned repayment of $50 million in term loan debt
  • Company is increasing its earnings per share expectations to reflect improved cash flow.
  • Company expects Topgolf revenue of approximately $1,960 million for the full year.

Headwinds

  • Increased foreign currency headwinds.
  • Higher levels of inventory at retail
  • Softer market conditions in Europe negatively impacting the Jack Wolfskin business.
  • Consolidated Net Revenues are expected to be $4,435 - $4,475 million compared to previous estimate of $4,515 - $4,555 million.
  • Topgolf Same Venue Sales Growth is expected to be slightly positive to down low single digits compared to previous estimate of approximately Flat.

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 2024

Historical avgQ1 2024

-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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