Topgolf Callaway cuts FY24 adjusted EPS view to 11c-21c from 31c-39c

Consensus 33c. Cuts FY24 revenue view to $4.2B-$4.26B from $4.435B-$4.475B, consensus $4.45B. Chip Brewer, President and Chief Executive Officer of Topgolf Callaway, said: “As we look forward, we remain convinced that Topgolf is a high-quality business with significant future opportunity. It is transforming the game of golf, and we believe it will deliver substantial growth and financial returns over time. At the same time, we have been disappointed in our stock performance for some time, as well as the more recent same venue sales performance. As a result, we are in the process of conducting a full strategic review of Topgolf. This review includes the assessment of organic strategies to return Topgolf to profitable same venue sales growth, as well as inorganic alternatives, including a potential spin of Topgolf. Our strategic review of Topgolf is being conducted with the help of outside advisors and is focused on maximizing long-term shareholder value. We are active in this work at present and expect to complete our strategic review of Topgolf expeditiously. We will report back on this when the work is complete.”