Yahoo Finance Topgolf Callaway Brands Corp. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Last week, you might have seen that Topgolf Callaway Brands Corp. (NYSE:MODG) released its quarterly result to the market. The early response was not positive, with shares down 5.8% to US$15.08 in the past week. It looks like a credible result overall - although revenues of US$1.1b were what the analysts expected, Topgolf Callaway Brands surprised by delivering a (statutory) profit of US$0.04 per share, an impressive 601% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Topgolf Callaway Brands
Following the latest results, Topgolf Callaway Brands' 13 analysts are now forecasting revenues of US$4.45b in 2024. This would be a satisfactory 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to crater 44% to US$0.23 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$4.53b and earnings per share (EPS) of US$0.26 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
The consensus price target held steady at US$20.09, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Topgolf Callaway Brands analyst has a price target of US$40.00 per share, while the most pessimistic values it at US$10.00. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Topgolf Callaway Brands' revenue growth is expected to slow, with the forecast 5.9% annualised growth rate until the end of 2024 being well below the historical 26% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.1% annually. So it's pretty clear that, while Topgolf Callaway Brands' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Topgolf Callaway Brands. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$20.09, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Topgolf Callaway Brands going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Topgolf Callaway Brands that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
