The 10-second takeaway
For the quarter ended June 30 (Q2), Callaway Golf met expectations on revenues and 0 on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share expanded.
Gross margins dropped, operating margins grew, net margins grew.
Callaway Golf reported revenue of $249.6 million. The seven analysts polled by S&P Capital IQ looked for revenue of $252.8 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $281.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.12. The seven earnings estimates compiled by S&P Capital IQ averaged $0.10 per share. GAAP EPS of $0.12 for Q2 were much higher than the prior-year quarter's $0.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.3%, 140 basis points worse than the prior-year quarter. Operating margin was 4.6%, 80 basis points better than the prior-year quarter. Net margin was 4.0%, 300 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $154.9 million. On the bottom line, the average EPS estimate is -$0.26.
Next year's average estimate for revenue is $824.5 million. The average EPS estimate is -$0.05.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 231 members out of 279 rating the stock outperform, and 48 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Callaway Golf a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Callaway Golf is outperform, with an average price target of $7.75.
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