Why Is Topgolf Callaway (MODG) Stock Rocketing Higher Today
Stock Story
Published Feb 14, 2024 12:10PM ET
Updated Feb 14, 2024 12:30PM ET
Why Is Topgolf Callaway (MODG) Stock Rocketing Higher Today
What Happened: Shares of golf entertainment and gear company Topgolf Callaway (NYSE:MODG) jumped 8.9% in the morning session after the company reported fourth-quarter results, which beat analysts' revenue expectations, driven by a better-than-expected performance at Topgolf. That stood out as a positive in these results.
On the other hand, its revenue guidance for the next quarter missed, and its operating margin fell short of Wall Street's estimates.
In terms of 2023 highlights, the company achieved positive free cash flow both on a consolidated basis and at Topgolf. In addition, its Callaway brand finished the year with the #1 U.S. market share for clubs, woods, drivers, fairway woods, hybrids, and irons. Overall, it was a strong quarter for the company. After the initial pop the shares cooled down to $14.21, up 4.9% from previous close.
Is now the time to buy Topgolf Callaway? Find out by reading the original article on StockStory.
What is the market telling us: Topgolf Callaway's shares are somewhat volatile and over the last year have had 18 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Topgolf Callaway is down 0.1% since the beginning of the year, and at $14.21 per share it is trading 41.1% below its 52-week high of $24.13 from February 2023. Investors who bought $1,000 worth of Topgolf Callaway's shares 5 years ago would now be looking at an investment worth $892.51.
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Written By: Stock Story
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