Callaway Golf (MODG), the leading golf equipment manufacturer, saw its stock plummet by 5% in pre-market trading on Tuesday. The sell-off came after the company reported disappointing fourth-quarter earnings and lowered its revenue guidance for the current quarter and full year.
Callaway reported a wider-than-expected non-GAAP net loss of $0.33 per diluted share for the fourth quarter, compared to a loss of $0.31 a year earlier. While revenue increased slightly to $924.4 million, it fell short of analysts' estimates.
Furthermore, the company lowered its revenue guidance for the first quarter and full year 2025, citing ongoing macroeconomic challenges. For Q1, Callaway expects revenue between $1.05 billion and $1.09 billion, lower than analysts' estimates of $1.13 billion. For the full year, the company forecasts revenue in the range of $4 billion to $4.19 billion, compared to analysts' expectations of $4.23 billion.