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.
Looking for alternatives to Callaway Golf? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Callaway Golf to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.