NYSE$CALY

Callaway Golf Company · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Callaway Golf Company announced record financial results for the second quarter of 2021.

Callaway Golf Company reported record financial results for Q2 2021, with consolidated net revenue increasing by $617 million (+208%) to $914 million. The company's performance was driven by higher-than-expected strength across the Golf Equipment and Apparel, Gear & Other segments, as well as contributions from Topgolf, which merged with the Company in March 2021. Q2 2021 net income was $92 million on a GAAP basis, and Adjusted EBITDA increased $135 million (+464%) to $164 million.

  • Consolidated net revenue increased $617 million (+208%) to $914 million.
  • Golf equipment and soft goods revenue increased 98% to a record $588 million.
  • Topgolf overperformed with $325 million in revenue.
  • Q2 2021 net income of $92 million on a GAAP basis.

Headline financials

Total Revenue

$914M

Previous: $297M+207.6%
EPS (adj)

$0.36

Previous: $0.06+500.0%
Capital Expenditures

-$121M

Previous: $8.14M-1583.7%
Free Cash Flow

-$29.1M

Previous: $65.2M-144.6%
Net Income

$91.7M

Previous: -$168M+154.6%
Operating Income

$107M

Previous: -$177M+160.5%
Gross Profit

$107M

Previous: $122M-12.1%
Cash & Equivalents

$415M

Previous: $164M+152.5%
Total Assets

$7.27B

Previous: $1.86B+291.0%
Stock-Based Comp

$11M

Previous: $2.93M+276.7%

Revenue & EPS history

Topgolf Callaway · Revenue · Quarterly

$914M

Q2 2021+207.6%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Topgolf Callaway · $726M total across 2 segments · Q2 2021

  • Golf Equipment
    $401M+91.0%
  • Topgolf
    $325M

Forward guidance

The third quarter and full year 2021 projections include the estimated impact of certain factors, including ongoing uncertainty due to the impact of COVID-19 on the supply chain, changes in foreign currency effects, and increased freight costs. Full year 2021 net revenue estimate assumes continued positive demand fundamentals for Callaway's Golf Equipment and Apparel, Gear and Other segments, along with Topgolf segment revenue for the 10 months beginning March 8, 2021 approaching 2019 full year levels of $1,060 million.

Tailwinds

  • Continued positive demand for Golf Equipment and Apparel, Gear and Other segments
  • Topgolf segment revenue approaching 2019 full year levels
  • Positive impact of foreign currency effects on net sales
  • Topgolf segment will deliver over $100 million in Adjusted EBITDA for the 10 months beginning March 8, 2021
  • Unique portfolio of businesses is well positioned for long-term growth

Headwinds

  • Ongoing uncertainty due to the impact of COVID-19 on the supply chain
  • Increased freight costs
  • Supply chain constraints
  • Non-GAAP operating expenses that are approximately $100 million higher than full year 2019
  • Lingering supply constraints and other challenges caused by the pandemic

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 Q2 2021

Historical avgQ2 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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