MODG Earnings Prediction
The chart below shows how MODG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MODG sees a +4.00% change in stock price 10 days leading up to the earnings, and a -3.24% change 10 days following the report. On the earnings day itself, the stock moves by -3.65%. This data can give you a slight idea of what to expect for the next quarter's release.
MODG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
924.40M
3.04%
-8.74%
Gross Margin
64.23%
0.25%
2.33%
Operating Margin
-0.95%
-73.83%
-128.53%
Net Margin
-163.64%
1805.01%
45355.56%
EPS
-8.23
-1859.52%
41050.00%
No Data Available
MODG Earnings Analysis
Topgolf Callaway Brands Corp Corporation (MODG.N) Earnings Conference Call
Positive
Earnings Surprise Report: Topgolf Callaway Brands Corp. beats earnings expectations with reported EPS of $-0.33, exceeding expectations of $-0.4.
Strong Q4 Performance: Q4 was a strong quarter with year-over-year growth in both Golf Equipment and TravisMathew, and Topgolf delivered better than expected same venue sales and record venue level margins.
Market Leadership in Golf: Golf Equipment maintained its leadership position in the U.S. golf club market share and drove record share in golf balls, with a strong performance in 2024.
EBITDA Performance Analysis: Topgolf generated $337 million in EBITDA with approximately 34% venue level EBITDA margins, flat versus 2023 and up 500 basis points versus 2019.
Strong Free Cash Flow: Total company free cash flow of $203 million was above expectations, strengthening the financial position of the company.
Strong Brand Performance Growth: TravisMathew is expected to deliver year-over-year growth on both the top and bottom line in 2025, indicating strong brand performance.
Organic EBITDA Growth Outlook: Despite headwinds, the company anticipates organic EBITDA growth of approximately 6% driven by gross margin improvements and cost savings.
Adjusted EBITDA Growth: Topgolf's operational improvements and new venue development helped deliver adjusted EBITDA growth of 11% versus 2024, showcasing effective management.
Golf Equipment Revenue Increase: The Golf Equipment business saw a 13% increase in revenue year-over-year, driven by successful product launches and strong brand performance.
Sales Performance Resilience: TravisMathew outperformed the market overall, with sales up approximately 7% when excluding timing issues, indicating strong brand resilience.
Negative
Decline in Venue Sales: Topgolf's same venue sales were down 8% in Q4, indicating a significant decline in customer spending and traffic.
EBITDA Headwinds Forecast: The company anticipates a $75 million year-over-year headwind to core business EBITDA due to foreign exchange, incentive compensation, and tariffs.
Same Venue Sales Decline: Topgolf's Q1 2025 same venue sales are expected to decline by 10% to 13%, with adverse weather conditions contributing to this downturn.
Goodwill Impairment Charge: The company reported a $1.45 billion non-cash accounting charge related to the impairment of Topgolf goodwill and intangible assets, which could raise concerns about the valuation of the Topgolf segment.
Revenue Decline Projection: For 2025, the company expects a decline in revenue across its core business, projecting a 5% decrease year-over-year at the midpoint of guidance.
EBITDA Decline Forecast: Topgolf's adjusted EBITDA is expected to decline by approximately $22 million on an organic basis for 2025, indicating challenges in maintaining profitability despite operational improvements.
MODG FAQs
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MODG Earning Call Sentiment
Topgolf Callaway Brands Corp. (NYSE:MODG) Q4 2024 Earnings Call Transcript
MODG.N
0.92%Positive
The earnings call presents a mixed outlook. While there are positive elements such as improved Q4 EPS, strong free cash flow, and record EBITDA margins for Topgolf, there are also concerns. The revenue guidance has been lowered, same venue sales are down, and the separation of Topgolf poses potential challenges. Additionally, the management's reluctance to provide specific guidance in the Q&A adds uncertainty. Considering the company's mid-cap size, the stock is likely to remain stable in the short term, resulting in a neutral sentiment.
