Callaway Golf Q2 revenue beats estimates; lifts forecast
MODG•Outlook raised for 2026
- Callaway raises 2026 net sales outlook to $2.045 bln-$2.070 bln
- Company lifts 2026 adjusted EBITDA forecast to $246 mln-$260 mln
- Callaway sees Q3 net sales of $415 mln-$435 mln, down from $463 mln a year ago
Drivers behind the quarter
- Golf equipment growth - Net sales rose 4.5% in Golf Equipment, driven by strength in clubs and balls
- Gross margin initiatives - Gross margins improved due to price increases, cost reductions and rationalizing lower margin business
- Apparel and FX headwinds - Apparel, Gear and Other segment sales fell 3.6% due to shipment timing and foreign exchange headwinds in Asia
Analyst coverage and valuation
- The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
- The average consensus recommendation for the recreational products peer group is "buy"
- Wall Street's median 12-month price target for Callaway Golf Co is $19.00, about 0.5% below its August 3 closing price of $19.09
- The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 30 three months ago
