Callaway Golf Co (ELY) Expected to Announce Earnings of $0.01 Per Share

Brokerages expect Callaway Golf Co (NYSE:ELY) to announce earnings of $0.01 per share for the current quarter, according to Zacks. Eight analysts have provided estimates for Callaway Golf’s earnings, with the lowest EPS estimate coming in at ($0.01) and the highest estimate coming in at $0.02. Callaway Golf reported earnings of $0.05 per share in the same quarter last year, which suggests a negative year-over-year growth rate of 80%. The business is expected to report its next quarterly earnings results on Wednesday, October 24th.

According to Zacks, analysts expect that Callaway Golf will report full year earnings of $1.00 per share for the current year, with EPS estimates ranging from $0.95 to $1.05. For the next fiscal year, analysts expect that the business will post earnings of $1.06 per share, with EPS estimates ranging from $0.92 to $1.15. Zacks’ EPS calculations are a mean average based on a survey of sell-side research firms that follow Callaway Golf.

Callaway Golf (NYSE:ELY) last issued its quarterly earnings data on Thursday, August 2nd. The company reported $0.63 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.47 by $0.16. Callaway Golf had a net margin of 8.70% and a return on equity of 16.39%. The firm had revenue of $396.31 million during the quarter, compared to the consensus estimate of $371.30 million. During the same period last year, the business posted $0.34 earnings per share. The business’s revenue for the quarter was up 30.1% compared to the same quarter last year.

Several research analysts have recently commented on the stock. Imperial Capital raised their target price on shares of Callaway Golf from $21.00 to $25.00 and gave the stock an “outperform” rating in a report on Tuesday, August 7th. They noted that the move was a valuation call. ValuEngine cut shares of Callaway Golf from a “strong-buy” rating to a “buy” rating in a report on Wednesday, May 2nd. Roth Capital raised their target price on shares of Callaway Golf from $20.00 to $24.00 and gave the stock a “buy” rating in a report on Friday, August 3rd. Compass Point set a $20.00 target price on shares of Callaway Golf and gave the stock a “hold” rating in a report on Monday, August 6th. Finally, JPMorgan Chase & Co. reissued an “overweight” rating and issued a $23.00 price objective on shares of Callaway Golf in a research note on Thursday, June 14th. Five analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company’s stock. Callaway Golf currently has a consensus rating of “Buy” and an average target price of $21.00.

In related news, VP Mark F. Leposky sold 21,767 shares of Callaway Golf stock in a transaction that occurred on Monday, June 4th. The shares were sold at an average price of $19.50, for a total value of $424,456.50. Following the transaction, the vice president now directly owns 140,499 shares of the company’s stock, valued at $2,739,730.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Mark F. Leposky sold 21,768 shares of Callaway Golf stock in a transaction that occurred on Friday, May 25th. The shares were sold at an average price of $19.00, for a total transaction of $413,592.00. Following the completion of the transaction, the vice president now directly owns 140,500 shares in the company, valued at $2,669,500. The disclosure for this sale can be found here. Insiders sold 87,069 shares of company stock worth $1,746,603 over the last three months. 2.59% of the stock is currently owned by insiders.

Institutional investors have recently modified their holdings of the business. Thompson Davis & CO. Inc. boosted its position in Callaway Golf by 587.5% in the first quarter. Thompson Davis & CO. Inc. now owns 6,875 shares of the company’s stock valued at $112,000 after buying an additional 5,875 shares in the last quarter. Massey Quick Simon & CO. LLC boosted its position in Callaway Golf by 100.0% in the first quarter. Massey Quick Simon & CO. LLC now owns 9,080 shares of the company’s stock valued at $149,000 after buying an additional 4,540 shares in the last quarter. Brown Advisory Inc. acquired a new stake in Callaway Golf in the first quarter valued at approximately $173,000. NumerixS Investment Technologies Inc boosted its position in Callaway Golf by 348.0% in the second quarter. NumerixS Investment Technologies Inc now owns 11,200 shares of the company’s stock valued at $215,000 after buying an additional 8,700 shares in the last quarter. Finally, Horizon Investment Services LLC acquired a new stake in Callaway Golf in the first quarter valued at approximately $192,000. Hedge funds and other institutional investors own 87.40% of the company’s stock.

Shares of Callaway Golf traded up $0.10, hitting $22.35, during mid-day trading on Friday, according to Marketbeat. 904,968 shares of the company’s stock were exchanged, compared to its average volume of 1,386,560. Callaway Golf has a 52 week low of $12.64 and a 52 week high of $23.60. The stock has a market capitalization of $2.10 billion, a PE ratio of 42.17, a P/E/G ratio of 0.89 and a beta of 0.99. The company has a current ratio of 1.84, a quick ratio of 1.08 and a debt-to-equity ratio of 0.01.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 4th. Investors of record on Monday, August 13th will be paid a $0.01 dividend. The ex-dividend date is Friday, August 10th. This represents a $0.04 dividend on an annualized basis and a yield of 0.18%. Callaway Golf’s dividend payout ratio (DPR) is 7.55%.

Callaway Golf declared that its Board of Directors has initiated a share repurchase plan on Wednesday, May 9th that permits the company to repurchase $50.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 3% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

About Callaway Golf

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs, golf balls, golf bags, and other golf-related accessories in the United States and internationally. The company operates through three segments: Golf Clubs; Golf Balls; and Gear, Accessories and Other.

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