The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Callaway Golf missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP loss per share grew.
Margins contracted across the board.
Callaway Golf booked revenue of $117.9 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $123.7 million on the same basis. GAAP reported sales were 23% lower than the prior-year quarter's $153.9 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 -$0.49. The seven earnings estimates compiled by S&P Capital IQ anticipated -$0.50 per share. GAAP EPS were -$1.03 for Q4 compared to -$1.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.9%, 2,040 basis points worse than the prior-year quarter. Operating margin was -60.6%, 4,000 basis points worse than the prior-year quarter. Net margin was -61.1%, 2,020 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $286.3 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $852.7 million. The average EPS estimate is $0.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 232 members out of 280 rating the stock outperform, and 48 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Callaway Golf a green thumbs-up, and 11 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 $8.10.
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