By Christiana Sciaudone
Investing.com -- Callaway Golf (NYSE:ELY) Company rose more than 4% after beating estimates, perhaps because it's easier to socially distance on the course. The year-long forecast also promises to be at least as good as pre-pandemic times.
Earnings per share of $2.19 easily beat the expected 12 cents on record sales of $652 million versus the estimated $562 million, according to data compiled by Investing.com.
Golf equipment is seeing unprecedented demand as the soft goods and Topgolf segments are recovering from the pandemic faster than expected, the company said.
Jefferies (NYSE:JEF) called the stock its top pick on a "rebirth" of the sport, with profit recovering and outperformance of the Topgolf business, StreetInsider reported.
“We are very pleased with our first quarter financial results, with revenues increasing 47% and Adjusted EBITDA increasing 113% in the first quarter of 2021 compared to the same period in 2020,” said Chief Executive Officer Chip Brewer in a statement. "We believe our three operating segments are well positioned for both the current environment and our expectations over the next several years.”
Callaway completed its purchase of Topgolf, which runs golf entertainment venues, in March. Shares have tripled to the highest in decades since the pandemic hit in March 2020. The outlook is pretty good, too.
Callaway previously guided that business would not achieve 2021 revenue or an adjusted Ebitda (earnings before interest, taxes, depreciation and amortization) equivalent to 2019 levels -- that's been revised to show the legacy Callaway business will exceed 2019 levels and the Topgolf business will meet or exceed the full twelve month 2019 levels.