NYSE$CALY

Callaway Golf Company · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Callaway's third quarter performance highlighted significant growth and profitability, with all segments recovering faster than anticipated and delivering results ahead of plan.

Callaway Golf Company reported a consolidated net revenue increase of $381 million (+80%) to $856 million for Q3 2021. The company experienced a GAAP net loss of $(16) million, but a non-GAAP net income of $26 million. Adjusted EBITDA increased by $51 million (+57%) to $139 million.

  • Consolidated net revenue increased $381 million (+80%) to $856 million.
  • GAAP net loss of $(16) million and non-GAAP net income of $26 million.
  • Adjusted EBITDA increased $51 million (+57%) to $139 million.
  • Full year 2021 revenue guidance increased to $3,110 to $3,120 million and Adjusted EBITDA guidance to $424 to $430 million.

Headline financials

Total Revenue

$856M

Previous: $476M+80.1%
EPS (adj)

$0.14

Previous: $0.60-76.7%
Capital Expenditures

-$199M

Previous: -$30.9M-543.4%
Free Cash Flow

-$215M

Previous: $21.5M-1098.5%
Net Income

-$16M

Previous: $52.4M-130.5%
Operating Income

$76M

Previous: $63.5M+19.7%
Gross Profit

$76M

Previous: $201M-62.1%
Cash & Equivalents

$508M

Previous: $287M+77.3%
Total Assets

$7.4B

Previous: $1.97B+276.2%
Stock-Based Comp

$11.5M

Previous: $3.27M+250.4%

Revenue & EPS history

Topgolf Callaway · Revenue · Quarterly

$856M

Q3 2021+80.1%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Topgolf Callaway · $624M total across 2 segments · Q3 2021

  • Topgolf
    $334M
  • Golf Equipment
    $290M+8.5%

Forward guidance

The company provided full year 2021 projections based on the best estimates at this time. Revenue is expected to be between $3,110 to $3,120 million and Adjusted EBITDA between $424 to $430 million.

Tailwinds

  • Full year 2021 net revenue estimate assumes Topgolf segment revenue for the 10 months beginning March 8, 2021 slightly above 2019 full year levels of $1,059 million
  • Continued positive demand fundamentals for Callaway's Golf Equipment and Apparel, Gear and Other segments
  • Improved supply in Golf Equipment in the fourth quarter
  • Topgolf segment will deliver approximately $158 million in Adjusted EBITDA for the ten months beginning March 8, 2021
  • Strong revenue flow-through

Headwinds

  • Ongoing impact of COVID-19 on the supply chain
  • Changes in foreign currency effects, which are estimated to have a positive full year impact of $33 million on net sales
  • Increased freight costs
  • Callaway's reported full year financial results will only include approximately ten months of Topgolf results in 2021.
  • January and February results which were in the aggregate $142.9 million in revenue and $2.3 million in Adjusted EBITDA will not be included

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 Q3 2021

Historical avgQ3 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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