Acushnet Holdings Corp. (NYSE:GOLF) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

The analysts might have been a bit too bullish on Acushnet Holdings Corp. (NYSE:GOLF), given that the company fell short of expectations when it released its second-quarter results last week. Acushnet Holdings missed analyst forecasts, with revenues of US$684m and statutory earnings per share (EPS) of US$1.12, falling short by 3.7% and 4.7% respectively. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Acushnet Holdings

Taking into account the latest results, the most recent consensus for Acushnet Holdings from nine analysts is for revenues of US$2.46b in 2024. If met, it would imply a credible 2.7% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$3.07, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$2.48b and earnings per share (EPS) of US$3.17 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at US$71.75, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Acushnet Holdings at US$86.00 per share, while the most bearish prices it at US$63.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Acushnet Holdings shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Acushnet Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.5% growth on an annualised basis. This is compared to a historical growth rate of 10.0% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.8% per year. So it's pretty clear that, while Acushnet Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Acushnet Holdings. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$71.75, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Acushnet Holdings going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Acushnet Holdings that you need to take into consideration.

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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.