Stock of the Day

March 6, 2025

Topgolf Callaway Brands (CALY)

$13.97
+$0.43 (+3.2%)
Market Cap: $2.42B

About Topgolf Callaway Brands

Topgolf Callaway Brands Corp. designs, manufactures, and sells golf equipment, golf and lifestyle apparel, and other accessories in the United States, Europe, Asia, and Internationally. The Topgolf segment operates Topgolf venues equipped with technology-enabled hitting bays, bars, dining areas, and event spaces, as well as Toptracer ball-flight tracking technology; and World Golf Tour digital golf game. The Golf Equipment segment provides drivers, fairway woods, hybrids, irons, wedges and packaged sets, putters, and pre-owned golf clubs under the Callaway and Odyssey brands, as well as golf balls under the Callaway Golf and Strata brands. The Active Lifestyle segment offers golf apparel and footwear; golf accessories, including golf bags, golf gloves, headwear, and practice aids under the Callaway brand; golf and lifestyle apparel, hats, luggage, and accessories under the TravisMathew brand; and footwear, belts, hats, facemasks, sunglasses, socks, and underwear under the Cuater by TravisMathew brand. This segment also provides storage and travel gear for sport and personal use, such as backpacks; travel, duffel, and golf bags; and storage gear accessories, as well as outerwear, headwear, and accessories under the OGIO brand. In addition, it offers outdoor apparel comprising jackets, trousers, dresses, skirts, and tops; and footwear and outdoor equipment, including packs and bags, travel bags, tents, sleeping bags, and accessories under the Jack Wolfskin brand. The company sells its products through golf retailers, sporting goods retailers, online retailers, mass merchants, department stores, third-party distributors, and mail order stores, as well as directly to consumers through its retail stores and websites. The company was formerly known as Callaway Golf Company and changed its name to Topgolf Callaway Brands Corp. in September 2022. Topgolf Callaway Brands Corp. was incorporated in 1982 and is headquartered in Carlsbad, California.

Today's Trend

Topgolf Callaway Brands Corp. (NYSE: CALY) shares have decreased despite a strong second-quarter earnings report, as investors weigh improved profitability against cautious revenue guidance and the stock’s elevated valuation.

  • Quarterly earnings beat expectations: CALY reported adjusted earnings of $0.39 per share, above the $0.35 consensus estimate and up from $0.24 a year earlier. Revenue reached $612.2 million. Callaway Golf Q2 Earnings
  • Profitability improved substantially: Management reported second-quarter net sales growth of 2%, GAAP net income from continuing operations growth of 67%, and adjusted EBITDA growth of 36%. Gross margins expanded by 620 basis points on a GAAP basis and 460 basis points on an adjusted basis. The company also repurchased $84 million of shares through June. Second Quarter 2026 Results
  • Analyst sentiment remains constructive: KeyCorp raised its price target to $22 from $19 and assigned an “overweight” rating, while B. Riley reaffirmed its “buy” rating and increased its target to $23 from $19. Analyst Ratings
  • Goldman Sachs raised its target to $19 from $17 but maintained a “neutral” rating, indicating limited near-term upside at recent trading levels. Goldman Sachs Price Target
  • Revenue guidance disappointed: Full-year revenue guidance of $2.0 billion-$2.1 billion was below the $2.1 billion consensus estimate, while third-quarter guidance of $415 million-$435 million was centered slightly below the $429.4 million estimate. Second-quarter revenue was also reported as down 44.9% year over year in one earnings summary, creating uncertainty around the company’s post-restructuring comparisons. CALY Earnings and Guidance

Overall, the stock’s decline appears driven by cautious forward revenue expectations and profit-taking after a strong run toward its 52-week high, partially offset by earnings beats, margin expansion, share repurchases, and higher analyst price targets.

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