Topgolf Callaway falls 17% to 2023 low after outlook disappoints

Topgolf Callaway Brands Corp (NYSE:MODG) dropped sharply in early trading on Wednesday after reporting results for a typically slow quarter.

Despite a top-line Q1 beat off 12.5% year-over-year overall revenue growth, investors were in a selling mood as they digested the numbers. Golf equipment sales were down 5.2% during the quarter to $443.7M, while the Topgolf chain saw a 25.3% jump in revenue to $403.5M.

Roth MKM analyst George Kelly said Topgolf Callaway’s management’s usual playbook of conservative forward quarter guidance came in slightly below the firm’s estimate and consensus. Q2 guidance was set up revenue of $1.175B to $1.195B vs. $1.22B consensus. Topgolf (MODG) management highlighted that the leisure company has several initiatives in place expected to boost second-half growth without going into great detail.

Topgolf Callaway Brands Corp. (GOLF) fell 16.88% in morning trading on Wednesday and shares swapped hands at the lowest level of 2023.

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