Callaway Golf, in the Spotlight Soon

Callaway Golf (NYSE: ELY  ) is expected to report Q4 earnings on Jan. 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Callaway Golf's revenues will decrease -19.6% and EPS will remain in the red.

The average estimate for revenue is $123.7 million. On the bottom line, the average EPS estimate is -$0.50.

Revenue details
Last quarter, Callaway Golf logged revenue of $147.9 million. GAAP reported sales were 15% lower than the prior-year quarter's $173.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.50. GAAP EPS were -$1.33 for Q3 versus -$1.01 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 21.1%, 990 basis points worse than the prior-year quarter. Operating margin was -36.0%, 1,410 basis points worse than the prior-year quarter. Net margin was -58.7%, 2,260 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $837.8 million. The average EPS estimate is -$0.78.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 232 members out of 280 rating the stock outperform, and 48 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Callaway Golf a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Callaway Golf is outperform, with an average price target of $8.00.

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