NYSE$GOLF

Acushnet Holdings Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Acushnet's Q4 2019 financial results were announced, revealing increased sales and earnings driven by successful product launches.

Acushnet Holdings Corp. reported a 7.3% increase in net sales and a 57.0% increase in net income for the fourth quarter of 2019, driven by successful product launches and growth across key segments.

  • Net sales for Q4 2019 increased by 7.3% year-over-year to $368.3 million.
  • Net income attributable to Acushnet Holdings Corp. for Q4 2019 rose by 57.0% year-over-year to $17.9 million.
  • Adjusted EBITDA for Q4 2019 increased by 23.3% year-over-year to $44.5 million.
  • The company's performance was driven by successful product launches, particularly in the Titleist golf balls segment.

Headline financials

Total Revenue

$368M

Previous: $343M+7.3%
EPS (adj)

$0.24

Previous: $0.15+60.0%
Adjusted EBITDA Margin

12.1%

Previous: 10.5%+15.2%
Capital Expenditures

$14.8M

Previous: $12.1M+21.8%
Free Cash Flow

$24.6M

Previous: $21.5M+14.1%
Net Income

$17.9M

Previous: $11.4M+56.8%
Operating Income

$28.6M

Previous: $19.6M+45.7%
Gross Profit

$187M

Previous: $175M+6.7%
Cash & Equivalents

$34.2M

Previous: $31M+10.2%
Total Assets

$1.82B

Previous: $1.69B+7.4%
Stock-Based Comp

$2.98M

Previous: $4.78M-37.6%

Revenue & EPS history

Acushnet · Revenue · Quarterly

$368M

Q4 2019+7.3%vs Q4 2018
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Acushnet · $108M total across 2 segments · Q4 2019

  • FootJoy Golf Wear
    $84.3M+6.3%
  • Titleist Golf Equipment
    $23.4M-7.9%

Forward guidance

Acushnet's 2020 outlook includes an estimated negative impact of the coronavirus of approximately $40 million in consolidated net sales and $18 million in Adjusted EBITDA and an estimated negative impact of unmitigated tariffs of approximately $5 million in Adjusted EBITDA. Consolidated net sales are expected to be approximately $1,665 to 1,705 million. Consolidated net sales on a constant currency basis are expected to be in the range of down 0.5% to up 1.9%. Adjusted EBITDA is expected to be approximately $220 to $240 million.

Tailwinds

  • Commitment to sustaining Pro V1 momentum.
  • Launching new AVX, Tour Soft and Velocity models.
  • Poised to launch new Vokey SM8 wedges and Cameron Special Select Putters in the first quarter.
  • Launching new Titleist metals later in the year.
  • Several new Titleist gear and FootJoy products and the continued growth and development of KJUS throughout 2020.

Headwinds

  • Estimated negative impact of the coronavirus of approximately $40 million in consolidated net sales.
  • Estimated negative impact of the coronavirus of approximately $18 million in Adjusted EBITDA.
  • Estimated negative impact of unmitigated tariffs of approximately $5 million in Adjusted EBITDA.
  • Consolidated net sales on a constant currency basis are expected to be in the range of down 0.5% to up 1.9%.
  • Adjusted EBITDA is expected to be approximately $220 to $240 million.

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 Q4 2019

Historical avgQ4 2019

+1.8%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+2.1%

Avg return

30 days after

56%

25 / 45 earnings

Positive

+20.4%

Q1 2021

Best reaction

-11.5%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.4%-6.7%-4.0%
Q4 2025+3.5%-0.1%-7.4%
Q3 2025+3.9%+7.1%+11.0%
Q1 2025+5.1%+9.4%+9.4%
Q4 2024-1.9%-2.0%+1.8%
Q3 2024+14.6%+11.1%+17.2%
Q2 2024+1.7%+0.4%-0.6%
Q1 2024-0.2%+1.3%+4.0%
Q4 2023-5.3%-6.6%-4.6%
Q3 2023+10.0%+14.0%+16.2%
Q2 2023-1.1%-2.5%-0.4%
Q1 2023+5.1%+1.7%-6.5%
Q4 2022+10.1%+7.1%+5.6%
Q3 2022-0.7%-2.6%+5.1%
Q2 2022+2.9%-0.2%-2.2%
Q1 2022-6.4%-6.5%-1.8%
Q4 2021+3.6%-1.5%-8.1%
Q3 2021+5.0%+2.9%-2.1%
Q2 2021+2.0%+0.7%-6.7%
Q1 2021+20.4%+18.7%+20.1%
Q4 2020-4.0%-6.6%-4.0%
Q3 2020+1.9%+2.4%+8.3%
Q2 2020-11.5%-12.1%-12.0%
Q1 2020+3.3%+1.1%+30.8%
Q4 2019-5.4%-1.4%-5.1%
Q3 2019+3.3%+3.0%+5.4%
Q2 2019-0.0%+0.5%+4.9%
Q1 2019-3.7%-5.8%-3.2%
Q4 2018+1.6%-2.4%-7.1%
Q3 2018+1.8%+5.6%-6.5%
Q2 2018+9.0%+8.6%+12.2%
Q1 2018-8.6%-4.5%+0.5%
Q4 2017+2.1%+3.3%+7.8%
Q3 2017+4.1%-2.9%+11.3%
Q2 2016-6.4%-5.2%-3.3%
Q2 2017-6.4%-5.2%-3.3%
Q1 2017-1.1%-4.7%-3.1%
Q1 2016-1.1%-4.7%-3.1%
Q1 2015-0.3%-1.6%+5.4%
Q4 2014-0.3%-1.6%+5.4%
Q2 2015-0.3%-1.6%+5.4%
Q4 2016+0.2%-1.9%+1.9%
Q3 2016+12.5%+12.2%-0.1%
Q4 2015+12.5%+12.2%-0.1%
Q3 2015+12.5%+12.2%-0.1%

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