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Topgolf Callaway Q3 Earnings & Revenues Top Estimates, Fall Y/Y
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Topgolf Callaway Brands Corp. (MODG - Free Report) reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the top and bottom lines declined on a year-over-year basis.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
MODG’s Q3 Earnings and Revenues
In the quarter under review, the company reported an adjusted earnings per share (EPS) of 2 cents, beating the Zacks Consensus Estimate of loss of 18 cents per share. In the prior-year quarter, the company reported an adjusted EPS of 19 cents.
Total revenues of $1.01 million beat the consensus estimate by 0.2%. However, the top line declined 2.7% year over year.
Topgolf Callaway Brands Corp. Price, Consensus and EPS Surprise
Topgolf: Revenues of this segment amounted to $453.2 million, up 1.2% from the reported value of $447.7 million in the year-ago quarter. The segment's operating income came in at $28.3 million compared with $38.9 million reported in the prior year quarter. The downside can be attributed to lower same-venue sales (down 11% year over year) and increased depreciation related to new venues.
Segment-adjusted EBITDA came in at $84.4 million compared with $90.9 million reported in the prior-year quarter. Operating efficiencies and cost management at Topgolf venues, along with favorable shipment timing in the legacy business added to the positives.
Golf Equipment: Revenues of this segment amounted to $293.5 million, almost flat year over year. The segment's operating income came in at $26.8 million compared with $35.2 million reported in the prior year quarter. The downside was driven by increased freight costs.
Active Lifestyle: Revenues of this segment amounted to $266.2 million, down 11.1% from the reported value of $299.5 million in the year-ago quarter. The decline can be attributed to lower European wholesale revenues at Jack Wolfskin. The segment's operating income came in at $19.4 million compared with $40 million reported in the prior-year quarter.
MODG’s Operating Highlights
During the third quarter of 2024, the company’s total costs and expenses amounted to $979.2 million compared with $966.8 million reported in the prior-year period.
Adjusted net income during the quarter came in at $4.3 million compared with $35.8 million reported in the prior-year quarter.
Adjusted EBITDA during the quarter came in at $119.8 million compared with $163.3 million reported in the prior-year quarter.
Balance Sheet
As of Sept. 30, 2024, MODG’s cash and cash equivalents amounted to $441.9 million compared with $393.5 million as of Dec. 31, 2023. The company’s long-term debt (as of Sept. 30) was $1.46 billion compared with $1.52 million at the 2023 end.
For the nine months ended Sept. 30, 2024, the company’s net cash provided by operating activities was $338.7 million compared with $227.7 million reported in the prior-year period.
MODG’s Q4 & 2024 Outlook
For the fourth quarter of 2024, the company expects revenues to be approximately $885 million. It expects adjusted EBITDA to be in the range of $74-$84 million.
In 2024, the company anticipates revenues to be approximately $4.2 billion, compared with the previous projection of $4.2-$4.26 billion. The company expects adjusted EBITDA to be in the range of $560-$570 million compared with the previous expectation of $570-$590 million. MODG projects adjusted EPS in the range of 8-13 cents, down from the prior expectation of 11-21 cents.
Royal Caribbean Cruises Ltd. (RCL - Free Report) posted impressive third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
In the quarter, the company exceeded its guidance, driven by stronger pricing on close-in demand, continued growth in onboard revenues and reduced costs due to timing factors. The company has raised its outlook for 2024 and reported elevated demand patterns heading into 2025.
Mattel, Inc. (MAT - Free Report) reported impressive third-quarter 2024 results, wherein the adjusted earnings and net sales topped the Zacks Consensus Estimate. The top line surpassed the consensus estimate after missing it for three consecutive quarters. On a year-over-year basis, net sales declined while adjusted earnings grew.
The company’s quarterly results benefited from its Optimizing for Profitable Growth program along with the focus on its multi-year strategy to expand its IP-driven toy business and entertainment offering. Although the top line was adversely impacted by reduced sales from both the reportable segments, the bottom line showed resilience through operational efficiencies.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.
The company's performance was backed by notable improvements in RevPAR, attributed to higher occupancy rates and average daily rates. Furthermore, in the quarter, Hilton opened 531 new hotels. It achieved net room growth of 33,600. As of Sept. 30, 2024, Hilton's development pipeline comprised nearly 3,525 hotels, with almost 492,400 rooms across 120 countries and territories — including 28 countries and regions with no running hotels. For 2024, the company expects net unit growth in the range of 7-7.5%.
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Topgolf Callaway Q3 Earnings & Revenues Top Estimates, Fall Y/Y
Topgolf Callaway Brands Corp. (MODG - Free Report) reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the top and bottom lines declined on a year-over-year basis.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
MODG’s Q3 Earnings and Revenues
In the quarter under review, the company reported an adjusted earnings per share (EPS) of 2 cents, beating the Zacks Consensus Estimate of loss of 18 cents per share. In the prior-year quarter, the company reported an adjusted EPS of 19 cents.
Total revenues of $1.01 million beat the consensus estimate by 0.2%. However, the top line declined 2.7% year over year.
Topgolf Callaway Brands Corp. Price, Consensus and EPS Surprise
Topgolf Callaway Brands Corp. price-consensus-eps-surprise-chart | Topgolf Callaway Brands Corp. Quote
MODG's Segmental Discussion
Topgolf: Revenues of this segment amounted to $453.2 million, up 1.2% from the reported value of $447.7 million in the year-ago quarter. The segment's operating income came in at $28.3 million compared with $38.9 million reported in the prior year quarter. The downside can be attributed to lower same-venue sales (down 11% year over year) and increased depreciation related to new venues.
Segment-adjusted EBITDA came in at $84.4 million compared with $90.9 million reported in the prior-year quarter. Operating efficiencies and cost management at Topgolf venues, along with favorable shipment timing in the legacy business added to the positives.
Golf Equipment: Revenues of this segment amounted to $293.5 million, almost flat year over year. The segment's operating income came in at $26.8 million compared with $35.2 million reported in the prior year quarter. The downside was driven by increased freight costs.
Active Lifestyle: Revenues of this segment amounted to $266.2 million, down 11.1% from the reported value of $299.5 million in the year-ago quarter. The decline can be attributed to lower European wholesale revenues at Jack Wolfskin. The segment's operating income came in at $19.4 million compared with $40 million reported in the prior-year quarter.
MODG’s Operating Highlights
During the third quarter of 2024, the company’s total costs and expenses amounted to $979.2 million compared with $966.8 million reported in the prior-year period.
Adjusted net income during the quarter came in at $4.3 million compared with $35.8 million reported in the prior-year quarter.
Adjusted EBITDA during the quarter came in at $119.8 million compared with $163.3 million reported in the prior-year quarter.
Balance Sheet
As of Sept. 30, 2024, MODG’s cash and cash equivalents amounted to $441.9 million compared with $393.5 million as of Dec. 31, 2023. The company’s long-term debt (as of Sept. 30) was $1.46 billion compared with $1.52 million at the 2023 end.
For the nine months ended Sept. 30, 2024, the company’s net cash provided by operating activities was $338.7 million compared with $227.7 million reported in the prior-year period.
MODG’s Q4 & 2024 Outlook
For the fourth quarter of 2024, the company expects revenues to be approximately $885 million. It expects adjusted EBITDA to be in the range of $74-$84 million.
In 2024, the company anticipates revenues to be approximately $4.2 billion, compared with the previous projection of $4.2-$4.26 billion. The company expects adjusted EBITDA to be in the range of $560-$570 million compared with the previous expectation of $570-$590 million. MODG projects adjusted EPS in the range of 8-13 cents, down from the prior expectation of 11-21 cents.
MODG’s Zacks Rank
Topgolf Callaway sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Recent Consumer Discretionary Releases
Royal Caribbean Cruises Ltd. (RCL - Free Report) posted impressive third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
In the quarter, the company exceeded its guidance, driven by stronger pricing on close-in demand, continued growth in onboard revenues and reduced costs due to timing factors. The company has raised its outlook for 2024 and reported elevated demand patterns heading into 2025.
Mattel, Inc. (MAT - Free Report) reported impressive third-quarter 2024 results, wherein the adjusted earnings and net sales topped the Zacks Consensus Estimate. The top line surpassed the consensus estimate after missing it for three consecutive quarters. On a year-over-year basis, net sales declined while adjusted earnings grew.
The company’s quarterly results benefited from its Optimizing for Profitable Growth program along with the focus on its multi-year strategy to expand its IP-driven toy business and entertainment offering. Although the top line was adversely impacted by reduced sales from both the reportable segments, the bottom line showed resilience through operational efficiencies.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.
The company's performance was backed by notable improvements in RevPAR, attributed to higher occupancy rates and average daily rates. Furthermore, in the quarter, Hilton opened 531 new hotels. It achieved net room growth of 33,600. As of Sept. 30, 2024, Hilton's development pipeline comprised nearly 3,525 hotels, with almost 492,400 rooms across 120 countries and territories — including 28 countries and regions with no running hotels. For 2024, the company expects net unit growth in the range of 7-7.5%.