Callaway Golf Eagles Earnings Estimates
Callaway Golf is reaching some record-breaking earnings milestones. Their latest Q1 earnings are up and their full year guidance is the best in over a decade. That is great news for our industry and shows that when you produce worthy products, golfers will snap them up quickly and often.
Even CNBC’s blowhard Jim Cramer is on the golf bandwagon.
“You know what has staying power here more than almost any group that I know? Golf,” the “Mad Money” host said. “I know that golf isn’t exactly the pinnacle of excitement. It’s not sexy. Some argue it shouldn’t even be a sport. The Masters had some massive ratings, though, especially when Tiger Woods was playing earlier in the tournament for the first time in years.”
“You know what has staying power here more than almost any group that I know? Golf,” the “Mad Money” host said. “I know that golf isn’t exactly the pinnacle of excitement. It’s not sexy. Some argue it shouldn’t even be a sport. The Masters had some massive ratings, though, especially when Tiger Woods was playing earlier in the tournament for the first time in years.”
Cramer found the aftermath of the Masters a perfect time to reiterate his call about a key market theme: the comeback in the game of golf and the related strength in golf-related stocks.
Since Cramer started talking about the golf comeback in 2016, two top golf stocks have stood out in terms of performance: Callaway Golf, which makes all sorts of golf-related products and owns a stake in fast-growing driving range operator Topgolf; and Acushnet Holdings, the parent company of highly respected golf brands Titleist and FootJoy.
Shares of Callaway Golf have gained 45 percent since Cramer first recommended the stock in 2016 and 15 percent since he reiterated the call six months ago.
“With Acushnet, I made the mistake of telling you to wait and see six months ago,” Cramer admitted. “I should’ve had more faith in them. Since then, the company has found its footing and the stock has caught fire. It’s up a quick 12 percent since the beginning of 2018.”
“It has been a strong start to 2018,” commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company. “Sales across our entire product line, including the Rogue line of woods and irons as well as the new Chrome Soft golf balls, are off to a strong start and we also benefitted from improved foreign exchange rates and market conditions.
