Why Topgolf Callaway Rallied Today
Shares of golf giant Topgolf Callaway (NYSE: MODG) rallied 8.8% on Thursday. The company delivered earnings last night that beat expectations across the board. Investors may also be looking forward to the spinoff of Topgolf, even though it may be pushed into next year in light of the unit CEO's resignation.
In the second quarter, Topgolf Callaway saw revenue decline slightly by 4.1% to $1.11 billion, with adjusted (non-GAAP) earnings per share down 45.2% to $0.24. While results were down, they also reflected the divestiture of the company's Jack Wolfskin apparel business. Moreover, both figures came in ahead of analyst expectations as results got "less bad." The core golf equipment business was down just 1.4%, and Topgolf, which had been a bigger problem, was down "only" 1.2%, as new price cuts seemed to work in spurring traffic.
CEO Chip Brewer noted:
Source Fool.com
