Charting Callaway Golf's Latest Earnings Release

Seth Jayson, The Motley Fool
Updated

Callaway Golf (NYS: ELY) reported earnings Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Callaway Golf met expectations on revenues and missed on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly, and earnings per share dropped.

Margins shrank across the board.

Revenue details
Callaway Golf booked revenue of $154 million. The seven analysts polled by S&P Capital IQ predicted net sales of $153 million. Sales were 17% lower than the prior-year quarter's $186 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at -$0.41. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.40 per share on the same basis. GAAP EPS were -$1.01 for Q4 versus -$0.55 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.4%, 850 basis points worse than the prior-year quarter. Operating margin was -32.3%, 1,750 basis points worse than the prior-year quarter. Net margin was -40.9%, 2,350 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $314 million. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $959 million. The average EPS estimate is $0.19.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 236 members out of 283 rating the stock outperform, and 47 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 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 $8.50.

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At the time thisarticle 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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