Why Topgolf Callaway Stock Was Slumping This Week
Over the past few days, investors have not generally been willing to tee up with the stock of Topgolf Callaway Brands (NYSE: MODG). According to data compiled by S&P Global Market Intelligence, as of late Thursday, the golfing specialist's stock was down by almost 13% week to date. News of an uninspiring quarter for the company was the driving factor in the decline.
Topgolf unveiled its third-quarter results just after market close on Tuesday. Revenue for the period was slightly over $1.01 billion, a figure that was down 3% on a year-over-year basis. On the bright side, it topped management's expectations and the consensus analyst estimate (albeit slightly), according to data compiled by Zack's.
These dynamics were more pronounced on the bottom line, where Topgolf suffered a queasy 88% decline in adjusted net income. This landed at $4.3 million ($0.02 per share), against the year-ago quarter's nearly $36 million profit. Yet the former topped the average pundit projection for an adjusted loss of $0.18 per share.
Source Fool.com
