{"id":82749,"date":"2023-11-09T19:19:20","date_gmt":"2023-11-10T00:19:20","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/topgolf-callaway-stock-has-its-worst-day-in-more-than-3-years-but-analysts-say-golf-equipments-not-the-problem\/"},"modified":"2023-11-09T19:19:24","modified_gmt":"2023-11-10T00:19:24","slug":"topgolf-callaway-stock-has-its-worst-day-in-more-than-3-years-but-analysts-say-golf-equipments-not-the-problem","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=82749","title":{"rendered":"Topgolf Callaway stock has its worst day in more than 3 years. But analysts say golf equipment\u2019s not the problem."},"content":{"rendered":"
\n

Shares of Topgolf Callaway Brands Corp. on Thursday suffered their worst percentage drop in more than three years, after the golf-equipment and venue giant a day earlier cut its full-year outlook and analyst sentiment on the stock soured. <\/p>\n

But analysts say that enthusiasm for golfing, which surged after pandemic lockdowns hit in 2020, isn\u2019t the main issue for Topgolf Callaway
\n MODG,
\n -16.87%<\/bg-quote>.<\/span>
\n Rather, they say, the difficulties lie with its sports-entertainment chain Topgolf, where higher prices for basics have weighed on demand and interest among corporate event-planners. <\/p>\n

\n

Stephens analyst Daniel Imbro, who was among the analysts to downgrade the shares of the company after it reported quarterly results on Wednesday, told MarketWatch that golf-equipment demand was still healthy, and that the sport was driven more far more by enthusiasts than hobbyists.<\/p>\n

\u201cComing out of COVID, we definitely lost some of the transitory golfers,\u201d he said. \u201cBut we gained more dedicated players.\u201d<\/p>\n

\u201cAs some portion of the people who picked up the game during COVID became more enthusiastic players, things that we tracked, like people keeping handicaps, number of lessons being given, we saw those metrics going higher, even as rounds played normalized last year,\u201d he continued.<\/p>\n

Topgolf Callaway sells golf equipment under the Callaway brand and runs the sports-entertainment chain Topgolf, which Callaway merged with in 2021. Driving ranges at Topgolf have dartboard-like targets that players can aim toward and are outfitted with ball-tracking technology, and they also offer food and alcohol. <\/p>\n

The purchase gave Topgolf Callaway a big revenue driver \u2014 Topgolf is the company\u2019s biggest sales segment \u2014 but a different business that involved running both driving ranges and restaurants. <\/p>\n

\u201cIncreasingly, what has mattered for the stock, and the story, has shifted from golf equipment to Topgolf,\u201d Imbro said. <\/p>\n

Topgolf Callaway was hit with downgrades from Stephens and JPMorgan, which both lowered their ratings to neutral or the equivalent. Both cited slowing demand at Topgolf as a primary reason. <\/p>\n

Shares finished 16.9% lower on Thursday to $10.35. The move marked the stock\u2019s biggest percentage drop since Oct. 28, 2020, when it tumbled 18.8%. <\/p>\n

The stock is down 48.9% so far this year. However, shares rival Acushnet Holdings Corp.
\n GOLF,
\n -0.24%<\/bg-quote>
\n \u2014 which owns golf-ball and equipment maker Titleist and is a more pure-play golf business \u2014 are up 28% over that period. Imbro also said Acushnet had a more conservative balance sheet this year. <\/p>\n

Executives at Topgolf Callaway said same-venue sales at Topgolf fell 3% during the third quarter, citing a come-down from a \u201ca post-COVID surge\u201d in corporate events last year, hotter weather in the South kept that visitors away and weaker trends in Asia.<\/p>\n

They said\u00a0they\u00a0planned to cut around $45 million in costs\u00a0per year\u00a0and lower capital spending by $100 million\u00a0over the next two years. Executives said they expected the company to be cash-flow positive this year,\u00a0but said the cuts would include staff reductions.<\/p>\n

Imbro, in his note downgrading the stock, said he felt investors didn\u2019t appreciate the potential benefits of Topgolf. Others said the dimmer view from Topgolf Callaway was expected by investors. <\/p>\n

\u201cTo be absolutely clear, we cannot sugarcoat the quarter\/\u201923 guidance cut, and investor patience is likely running at threadbare levels after tonight\u2019s print\/call,\u201d Truist analysts said in a note Wednesday. \u201cThat said, the 3Q miss\/guide down was fully expected by investors, in our view.\u201d<\/p>\n

However, they said management\u2019s efforts to address cash concerns and a more conservative tack on Topgolf\u2019s long-term growth prospects \u201ccould, ironically, be favorably received in certain camps.\u201d <\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Topgolf Callaway Brands Corp. on Thursday suffered their worst percentage drop in more than three years, after the golf-equipment and venue giant a day earlier cut its full-year outlook and analyst sentiment on the stock soured. But analysts say that enthusiasm for golfing, which surged after pandemic lockdowns hit in 2020, isn\u2019t the […]<\/p>\n","protected":false},"author":1,"featured_media":82750,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-82749","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nTopgolf Callaway stock has its worst day in more than 3 years. But analysts say golf equipment\u2019s not the problem. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Shares of Topgolf Callaway Brands Corp. on Thursday suffered their worst percentage drop in more than three years, after the golf-equipment and venue\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=82749\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Topgolf Callaway stock has its worst day in more than 3 years. But analysts say golf equipment\u2019s not the problem. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Shares of Topgolf Callaway Brands Corp. on Thursday suffered their worst percentage drop in more than three years, after the golf-equipment and venue\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=82749\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-10T00:19:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-10T00:19:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1699575561_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=82749#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=82749\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Topgolf Callaway stock has its worst day in more than 3 years. But analysts say golf equipment\u2019s not the problem.\",\"datePublished\":\"2023-11-10T00:19:20+00:00\",\"dateModified\":\"2023-11-10T00:19:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=82749\"},\"wordCount\":602,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=82749#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=82749\",\"url\":\"https:\/\/ifintechworld.com\/?p=82749\",\"name\":\"Topgolf Callaway stock has its worst day in more than 3 years. But analysts say golf equipment\u2019s not the problem. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-11-10T00:19:20+00:00\",\"dateModified\":\"2023-11-10T00:19:24+00:00\",\"description\":\"Shares of Topgolf Callaway Brands Corp. on Thursday suffered their worst percentage drop in more than three years, after the golf-equipment and venue\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=82749#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=82749\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=82749#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Topgolf Callaway stock has its worst day in more than 3 years. But analysts say golf equipment\u2019s not the problem.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Topgolf Callaway stock has its worst day in more than 3 years. But analysts say golf equipment\u2019s not the problem. | iFintechWorld","description":"Shares of Topgolf Callaway Brands Corp. on Thursday suffered their worst percentage drop in more than three years, after the golf-equipment and venue","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=82749","og_locale":"en_US","og_type":"article","og_title":"Topgolf Callaway stock has its worst day in more than 3 years. But analysts say golf equipment\u2019s not the problem. | iFintechWorld","og_description":"Shares of Topgolf Callaway Brands Corp. on Thursday suffered their worst percentage drop in more than three years, after the golf-equipment and venue","og_url":"https:\/\/ifintechworld.com\/?p=82749","og_site_name":"iFintechWorld","article_published_time":"2023-11-10T00:19:20+00:00","article_modified_time":"2023-11-10T00:19:24+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1699575561_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=82749#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=82749"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Topgolf Callaway stock has its worst day in more than 3 years. But analysts say golf equipment\u2019s not the problem.","datePublished":"2023-11-10T00:19:20+00:00","dateModified":"2023-11-10T00:19:24+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=82749"},"wordCount":602,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=82749#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=82749","url":"https:\/\/ifintechworld.com\/?p=82749","name":"Topgolf Callaway stock has its worst day in more than 3 years. But analysts say golf equipment\u2019s not the problem. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-11-10T00:19:20+00:00","dateModified":"2023-11-10T00:19:24+00:00","description":"Shares of Topgolf Callaway Brands Corp. on Thursday suffered their worst percentage drop in more than three years, after the golf-equipment and venue","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=82749#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=82749"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=82749#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Topgolf Callaway stock has its worst day in more than 3 years. But analysts say golf equipment\u2019s not the problem."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/82749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=82749"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/82749\/revisions"}],"predecessor-version":[{"id":82751,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/82749\/revisions\/82751"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/82750"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=82749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=82749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=82749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}