What Happened?
Shares of golf entertainment and gear company Callaway Golf Company (NYSE: CALY) fell 11.4% in the morning session after the company reported fourth-quarter revenue that significantly missed analyst expectations and issued a disappointing financial outlook for 2026.
The golf equipment maker’s fourth-quarter revenue came in at $367.5 million, far below the consensus estimate of $790.5 million. The company's forecast for the upcoming year also concerned investors, as Callaway guided for full-year 2026 adjusted earnings (EBITDA) to be $182.5 million at the midpoint, which fell short of analysts' expectations of $204.2 million. This combination of a steep revenue shortfall and a weaker outlook for profitability prompted a sharp negative reaction from investors.
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What Is The Market Telling Us
Callaway Golf Company’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. But moves this big are rare even for Callaway Golf Company and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 8 months ago when the stock gained 15.2% on the news that Director Adebayo Ogunlesi announced he bought 383,700 shares valued at about $2.5 million. These transactions are often seen as a sign of leadership's belief in the company's strategic plan and potential for future growth.
Callaway Golf Company is up 10.6% since the beginning of the year, but at $12.96 per share, it is still trading 18% below its 52-week high of $15.81 from January 2026. Investors who bought $1,000 worth of Callaway Golf Company’s shares 5 years ago would now be looking at an investment worth $458.58.
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