Market Updates
Topgolf Venue Drives Callaway Sales Higher
Scott Peters
11 May, 2022
New York City
Callaway Golf Company reported first quarter 2022 revenues increased 59.6% to $1.04 billion and net income declined 71% to $88 million.
Diluted earnings per share in the quarter declined to 44 cents from $2.19.
Net revenues increased $388.6 million, driven by a $229.4 million increase in the Topgolf business which was included for three months in 2022 compared to one month in 2021 due to the timing of the merger.
Golf Equipment sales increased $91.1 million and apparel and gear sales increased $68.1 million.
Changes in foreign currency rates had a $21.2 million negative impact on the quarterly revenues.
GAAP-based net income decreased due the $252.5 million in gains resulting from the Topgolf acquisition in March 2021 partially offset by favorable $65.4 million tax allowance on a comparable basis.
Adjusting for the acquisition related gains and tax valuation allowance and other items, the quarterly earnings declined to $70.9 million from $76.6 million a year ago.
The first quarter 2021 results do not include $27.8 million of pre-tax loss from Topgolf for January and February, which occurred prior to the closing of the merger.
Guidance and Outlook
The company lifted annual revenue outlook to between $3.935 billion and $3.970 billion and adjusted operating earnings between $535 million and $555 million.
Company and Stock
Callaway Golf Company is headquartered in Carlsbad, California and employs about 4,200 people.
Callaway stock jumped 13% to $20.30 after the release of earnings and for the year the stock is down 27%.
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Earnings
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