Last week, you might have seen that Topgolf Callaway Brands Corp. (NYSE:MODG) released its quarterly result to the market. The early response was not positive, with shares down 5.6% to US$6.58 in the past week. Although revenues of US$1.1b were in line with analyst expectations, Topgolf Callaway Brands surprised on the earnings front, with an unexpected (statutory) profit of US$0.01 per share a nice improvement on the losses that the analystsforecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the recent earnings report, the consensus from eleven analysts covering Topgolf Callaway Brands is for revenues of US$4.03b in 2025. This implies a noticeable 3.6% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 92% to US$0.63. Before this earnings announcement, the analysts had been modelling revenues of US$4.10b and losses of US$0.49 per share in 2025. So it's pretty clear the analysts have mixed opinions on Topgolf Callaway Brands even after this update; although they reconfirmed their revenue numbers, it came at the cost of a considerable increase to per-share losses.

View our latest analysis for Topgolf Callaway Brands

The consensus price target held steady at US$8.84, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Topgolf Callaway Brands analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$6.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.8% by the end of 2025. This indicates a significant reduction from annual growth of 20% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.7% annually for the foreseeable future. It's pretty clear that Topgolf Callaway Brands' revenues are expected to perform substantially worse than the wider industry.

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The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Topgolf Callaway Brands analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted  1 warning sign for Topgolf Callaway Brands  you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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