Golf entertainment and gear company Topgolf Callaway (NYSE:MODG) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.

Topgolf Callaway beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $1.01 billion, down 2.7% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EPS estimates.

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 decline 1.4% year on year to $884.3 million, a reversal from the 5.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.42 per share.

Analysts covering the company have generally 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 six times over the last two years.

Looking at Topgolf Callaway’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Live Nation’s revenues decreased 2.7% year on year, beating analysts’ expectations by 1.4%, and Marcus & Millichap reported revenues up 44.4%, topping estimates by 20.2%. Live Nation traded down 1.9% following the results while Marcus & Millichap was up 5.4%.

Read our full analysis of Live Nation’s results here and Marcus & Millichap’s results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the consumer discretionary stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.7% on average over the last month. Topgolf Callaway is down 12.9% during the same time and is heading into earnings with an average analyst price target of $11.58 (compared to the current share price of $7.02).

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