Earnings To Watch: Topgolf Callaway (MODG) Reports Q1 Results Tomorrow

Golf entertainment and gear company Topgolf Callaway (NYSE:MODG) will be announcing earnings results tomorrow after the bell. Here's what to look for.

Topgolf Callaway beat analysts' revenue expectations by 3.7% last quarter, reporting revenues of $897.1 million, up 5.4% year on year. It was a weaker quarter for the company, with revenue guidance for the next quarter falling below Wall Street's expectations.

Is Topgolf Callaway a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Topgolf Callaway's revenue to be flat year on year at $1.16 billion, slowing from the 12.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Topgolf Callaway has missed Wall Street's revenue estimates twice over the last two years.

Looking at Topgolf Callaway's peers in the leisure facilities segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Live Nation delivered year-on-year revenue growth of 21.5%, beating analysts' expectations by 16.6%, and Life Time reported revenues up 16.8%, topping estimates by 1.4%. Live Nation traded up 7.2% following the results while Life Time was also up 3.4%.

Read our full analysis of Live Nation's results here and Life Time's results here.

Investors in the leisure facilities segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Topgolf Callaway's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $20 (compared to the current share price of $16.45).

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