The Gory Details of Callaway Golf's Double Miss
Callaway Golf (NYS: ELY) reported earnings on April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Callaway Golf missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded significantly.
Gross margin contracted, operating margin contracted, and net margin expanded.
Callaway Golf logged revenue of $285.1 million. The seven analysts polled by S&P Capital IQ hoped for revenue of $309.5 million on the same basis. GAAP reported sales were 0.2% lower than the prior-year quarter's $285.6 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 $0.18. The seven earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS of $0.37 for Q1 were 147% higher than the prior-year quarter's $0.15 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 43.6%, 190 basis points worse than the prior-year quarter. Operating margin was 9.8%, 50 basis points worse than the prior-year quarter. Net margin was 11.2%, 670 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $312.9 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $980.3 million. The average EPS estimate is $0.12.
The stock has a two-star rating (out of five) at Motley Fool CAPS. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Callaway Golf a green thumbs-up, and 14 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 $8.67.
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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.
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