Callaway Golf Posts Q4 Loss, Misses Revenue Targets
Callaway Golf's Recent Financial Performance
Callaway Golf (CALY) reported a quarterly loss of $0.25 per share, which was better than the Zacks Consensus Estimate of a loss of $0.45. This is an improvement from the previous year’s loss of $0.33 per share. The figures are adjusted for non-recurring items.
This quarter marked an earnings surprise of +44.44%. In the previous quarter, the company had expected a loss of $0.21 per share, but it actually recorded a loss of $0.05, resulting in a surprise of +76.19%.
Over the last four quarters, Callaway has exceeded consensus EPS estimates on all four occasions. The company belongs to the Zacks Leisure and Recreation Products industry and reported revenues of $367.5 million for the quarter ended December 2025. This fell short of the Zacks Consensus Estimate by 53.39%. Compared to the same period last year, when revenues were $924.4 million, this represents a significant drop.
However, the company has surpassed consensus revenue estimates three times over the past four quarters. The sustainability of the stock’s immediate price movement based on the recently released numbers and future earnings expectations will largely depend on management’s commentary during the earnings call.
Since the beginning of the year, Callaway shares have increased by approximately 29.1%, outperforming the S&P 500’s gain of 1.4%.
What’s Next for Callaway?
While Callaway has outperformed the market so far this year, investors are keen to know what lies ahead for the stock. There are no straightforward answers to this question, but one reliable measure that can help investors assess the future is the company’s earnings outlook.
This includes current consensus earnings expectations for the coming quarter(s), as well as how these expectations have evolved recently. Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track these revisions themselves or use a proven rating tool like the Zacks Rank, which has a strong track record of leveraging the power of earnings estimate revisions.
Before this earnings release, the estimate revisions trend for Callaway was positive. Although the magnitude and direction of estimate revisions could change following the company’s recent earnings report, the current trend translates into a Zacks Rank #1 (Strong Buy) for the stock. This suggests that the shares are expected to outperform the market in the near future.
Investors should monitor how estimates for the coming quarters and the current fiscal year evolve in the days ahead. The current consensus EPS estimate is $0.29 on $645.96 million in revenues for the next quarter, and $0.27 on $2.08 billion in revenues for the current fiscal year.
It is important to note that the outlook for the industry can significantly impact the performance of the stock. In terms of the Zacks Industry Rank, Leisure and Recreation Products is currently in the top 28% of the 250 plus Zacks industries. Research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Amer Sports, Inc. and Industry Outlook
Amer Sports, Inc. (AS), another player in the same industry, has not yet reported results for the quarter ended December 2025. The results are expected to be released on February 24.
The company is anticipated to post quarterly earnings of $0.27 per share in its upcoming report, representing a year-over-year increase of +58.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Amer Sports, Inc.’s revenues are expected to reach $1.99 billion, up 21.7% from the year-ago quarter.
