Why Topgolf Callaway Plunged Today
Topgolf Callaway (NYSE: MODG) shares were falling on Tuesday, down 13.4% as of 1:42 p.m. ET, despite the overall S&P 500 (SNPINDEX: ^GSPC) rallying about 1.1% at that time on the back of this morning's softer-than-expected inflation report.
Topgolf Callaway reported earnings last night that actually beat analyst expectations, while management reiterated its full-year outlook. However, that same revenue and profit outlook included a decrease in expectations for the Topgolf segment, offset by a better-than-expected outlook in the company's legacy golf equipment and active lifestyle clothing segments.
Topgolf is thought to be the more exciting growth driver for the company, so the decreased expectations for it appear to be outweighing the lift in the company's legacy segments.
Source Fool.com
