Group 1 - Acushnet Holdings (NYSE: GOLF), owner of the Titleist brand, is being revisited for investment potential due to its strong brand presence in the golf industry [1] - The company is recognized for its appreciation in the golf sector, indicating a positive outlook for its market position [1] Group 2 - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow generation as a key metric for value and growth prospects [2] - Subscribers have access to a comprehensive stock model account and in-depth cash flow analyses of exploration and production (E&P) firms, enhancing investment decision-making [2]

Core Concept - Captain Morgan Sliced is launching the "Play the Slice" campaign, encouraging fans to share their golf swings on social media for a chance to win a golf getaway [1][2]. Group 1: Campaign Details - The "Play the Slice" contest runs until the end of July, inviting participants aged 21 and over to post their golf slices on Instagram [1]. - The campaign is an official partnership with the Breezy Open, featuring events in Virginia, New Jersey, and Georgia, along with Sliced Lounges and rewards [2]. - The contest includes a grand prize of a golf trip for four to Hilton Head, South Carolina, which includes flights and accommodations [1]. Group 2: Brand Messaging - The campaign emphasizes a fun and relaxed approach to golf, celebrating all types of swings, including imperfect ones [4][5]. - Captain Morgan Sliced is marketed as a premium ready-to-drink beverage with a 5.8% ABV, available in Original and Sweet vs. Heat variety packs for a suggested retail price of $19.99 [5]. Group 3: Merchandise - A limited-edition "Play the Slice Collection" will be launched later this summer in collaboration with Pluto Golf, featuring various golf apparel and accessories [4]. Group 4: Company Background - Captain Morgan is the number one selling spiced rum in the U.S., with a diverse portfolio of flavored rums [8]. - Diageo, the parent company, is a global leader in beverage alcohol, with products sold in over 180 countries [11].

Financial Performance - Net sales for Q1 2025 were $703.372 million, a slight decrease of 0.3% compared to $707.554 million in Q1 2024[24] - Gross profit for Q1 2025 was $337.162 million, down from $342.352 million in Q1 2024, reflecting a gross margin of approximately 47.9%[24] - Net income attributable to Acushnet Holdings Corp. for Q1 2025 was $99.372 million, an increase of 13.1% from $87.762 million in Q1 2024[24] - Basic net income per share for Q1 2025 was $1.62, compared to $1.36 in Q1 2024, representing an increase of 19.1%[24] - The company reported a comprehensive income of $105.835 million for Q1 2025, compared to $76.632 million in Q1 2024[27] - Net income for the three months ended March 31, 2025, was $99,025,000, an increase of 17.1% compared to $84,559,000 in the same period of 2024[30] - Total net sales for the reportable segments reached $670.491 million for the three months ended March 31, 2025, with Titleist Golf Equipment contributing $421.092 million, FootJoy Golf Wear $178.436 million, and Golf Gear $70.963 million[103] - The total operating income for the consolidated segments was $114.547 million for the three months ended March 31, 2025, compared to $120,595 million before income tax[103] Assets and Liabilities - Total assets as of March 31, 2025, were $2.403 billion, up from $2.180 billion as of December 31, 2024[22] - Total liabilities increased to $1.618 billion as of March 31, 2025, compared to $1.383 billion at the end of 2024[22] - The total shareholders' equity as of March 31, 2025, was $780,284,000, a decrease from $903,087,000 as of December 31, 2023[32] - Cash and cash equivalents decreased to $40.599 million as of March 31, 2025, from $53.059 million at the end of 2024[22] - Accounts receivable decreased by $254,549,000 in Q1 2025, compared to a decrease of $267,847,000 in Q1 2024[30] - Total inventories decreased to $538.1 million as of March 31, 2025, from $575.9 million as of December 31, 2024[51] Cash Flow and Financing - Cash flows used in operating activities amounted to $(120,254,000) for Q1 2025, compared to $(109,516,000) in Q1 2024, reflecting a decrease in cash flow[30] - Cash flows provided by financing activities were $118,145,000 in Q1 2025, up from $101,571,000 in Q1 2024[30] - The company recorded a non-cash gain on deconsolidation of $20,887,000 related to Lionscore during the three months ended March 31, 2025[41] - The company had $597.6 million of outstanding indebtedness at variable interest rates, with a potential increase of $6.0 million in annual pre-tax interest expense for a one percentage point increase in interest rates[171] Research and Development - Research and development expenses rose to $18.859 million in Q1 2025, compared to $16.453 million in Q1 2024, indicating a focus on innovation[24] - Research and development expenses amounted to $16.0 million, indicating the company's investment in innovation[104] Shareholder Activities - The company declared a dividend of $0.235 per common share for the first quarter of 2025, totaling $14.576 million, compared to $0.215 per share in the previous year[78] - As of March 31, 2025, the company had $415.5 million remaining under its share repurchase authorization, having repurchased 540,944 shares at an average price of $67.73, totaling $36.637 million[84] - The company recognized a share repurchase liability of $99.1 million for 1,476,851 shares as of March 31, 2025, reflecting ongoing repurchase agreements with Magnus Holdings[82] Tax and Regulatory - The company's effective income tax rate decreased to 17.9% for the three months ended March 31, 2025, down from 21.7% for the same period in 2024, resulting in a tax expense of $21.6 million, a decrease of $1.8 million year-over-year[76][77] Risks and Challenges - Acushnet Holdings Corp. continues to face risks related to global economic conditions, competition, and supply chain disruptions, which may impact future performance[13] - The company is exposed to commodity price risks for materials used in manufacturing, including polybutadiene and titanium[177] - Inflationary pressures may adversely affect the company's operating results, particularly in raw materials and wage rates[178] Compensation and Employee Benefits - Share-based compensation expense was $6,941,000 in Q1 2025, slightly down from $7,424,000 in Q1 2024[30] - The total net periodic benefit cost for pension benefits was $2.243 million for the three months ended March 31, 2025, compared to $2.271 million in the same period of 2024[75] - The number of PSUs that vested during the three months ended March 31, 2025, was 151,848, resulting in the entitlement to receive 196,795 shares of common stock[91] - The cumulative undelivered shares of common stock as of March 31, 2025, were 517,542 for RSUs and 546,789 for PSUs[94] Foreign Exchange and Derivatives - The gross U.S. dollar equivalent notional amount of foreign exchange forward contracts was $206.2 million as of March 31, 2025[63] - For the three months ended March 31, 2025, the company reported total losses from foreign exchange forward contracts of $549,000 compared to gains of $3.461 million in the same period of 2024[67] - The company expects to reclassify a net gain of $4.6 million related to foreign exchange derivative instruments from accumulated other comprehensive loss into cost of goods sold within the next 12 months[66]

For the quarter ended March 2025, Acushnet (GOLF) reported revenue of $703.37 million, down 0.6% over the same period last year. EPS came in at $1.62, compared to $1.43 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $696.62 million, representing a surprise of +0.97%. The company delivered an EPS surprise of +22.73%, with the consensus EPS estimate being $1.32.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Acushnet (GOLF) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Sondra Lennon - VP - FP&A and IRDavid Maher - President & CEOSean Sullivan - Executive VP & CFOCarlos Gallagher - Senior Associate - Equity Research Conference Call Participants Megan Christine Alexander - AnalystJoseph Altobello - MD & Senior AnalystNone - AnalystNoah Zatzkin - Vice President & Equity Research Analyst Operator Good morning, all, and thank you for joining us for today's Acushnet Company First Quarter twenty ...

Acushnet (GOLF) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Speaker0 Good morning, all, and thank you for joining us for today's Acushnet Company First Quarter twenty twenty five Earnings Call. My name is Drew, and I'll be the operator today. During today's call, after the prepared remarks, there will be a Q and A session. It's now my pleasure to hand over to Saundra Lennon, Vice President, FP and A and Investor Relations to begin. Please go ahead when you're ready. Speaker1 Good morning, everyone. Thank ...

Core Insights - Acushnet reported quarterly earnings of $1.62 per share, exceeding the Zacks Consensus Estimate of $1.32 per share, and up from $1.43 per share a year ago, representing an earnings surprise of 22.73% [1] - The company posted revenues of $703.37 million for the quarter, surpassing the Zacks Consensus Estimate by 0.97%, but down from $707.55 million year-over-year [2] - Acushnet has surpassed consensus EPS estimates three times over the last four quarters, while it has topped revenue estimates only once in the same period [2] Earnings Outlook - The sustainability of Acushnet's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $723.61 million, and for the current fiscal year, it is $3.48 on revenues of $2.51 billion [7] Industry Context - The Leisure and Recreation Products industry, to which Acushnet belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5][6]

First Quarter 2025 Earnings Call May 7, 2025 FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements that reflect our current views with respect to, among other things, our 2025 outlook, our operations and our financial performance. These forward-looking statements are included throughout this presentation and relate to matters such as our industry, business strategy, goals and expectations concerning our market position, future operations, strategic priorities and initiatives, fore ...

Financial Performance - First quarter net sales were $703.4 million, down 0.6% year over year, but up 1.2% in constant currency[6] - Net income attributable to Acushnet Holdings Corp. increased 13.2% to $99.4 million, primarily due to a non-cash pre-tax gain of $20.9 million related to the FootJoy golf shoe joint venture[12] - Adjusted EBITDA for the first quarter was $138.9 million, down 9.6% year over year, with an adjusted EBITDA margin of 19.7%[12] - Net sales for the three months ended March 31, 2025, were $703.4 million, a decrease of 0.6% compared to $707.6 million in the same period of 2024[31] - Gross profit for the first quarter of 2025 was $337.2 million, down from $342.4 million in 2024, reflecting a gross margin of approximately 47.9%[24] - Net income attributable to Acushnet Holdings Corp. increased to $99.4 million in Q1 2025, compared to $87.8 million in Q1 2024, representing a growth of 13.5%[24] - Adjusted EBITDA for Q1 2025 was $138.856 million, down from $153.691 million in Q1 2024, resulting in a decrease of about 9.6%[43] - Adjusted EBITDA margin decreased to 19.7% in Q1 2025 from 21.7% in Q1 2024[43] Sales Performance - Titleist golf equipment net sales increased by 2.2% (3.8% in constant currency), driven by higher sales volumes of Pro V1 and Pro V1x golf balls[11] - FootJoy golf wear net sales decreased by 6.6% (4.9% in constant currency), primarily due to lower sales volumes in footwear and apparel[11] - Net sales in regions outside the United States decreased by 3.5%, but increased by 0.8% on a constant currency basis[9] - The United States market saw a net sales increase of 1.4% to $424.2 million in Q1 2025, up from $418.2 million in Q1 2024[32] - The company experienced a decrease in FootJoy golf wear sales, which fell by 6.6% to $178.4 million in Q1 2025 compared to $191.1 million in Q1 2024[31] Expenses and Costs - Research and development expenses rose to $18.9 million in Q1 2025, up from $16.5 million in Q1 2024, indicating a focus on innovation[24] - Interest expense for Q1 2025 was $13.815 million, compared to $13.076 million in Q1 2024, reflecting an increase of approximately 5.7%[43] - Income tax expense decreased to $21.570 million in Q1 2025 from $23.407 million in Q1 2024, a reduction of about 7.9%[43] - Share-based compensation decreased slightly to $6.941 million in Q1 2025 from $7.424 million in Q1 2024[43] - Restructuring costs significantly decreased to $53, down from $6.967 million in Q1 2024[43] - Transformation costs were $3.158 million in Q1 2025, compared to $3.825 million in Q1 2024[43] Cash and Assets - Cash dividend declared at $0.235 per share, payable on June 20, 2025[13] - During the quarter, the company repurchased 540,944 shares at an average price of $67.73, totaling $36.6 million[14] - Total assets as of March 31, 2025, were $2.4 billion, an increase from $2.2 billion at the end of 2024[27] - The company reported a total current asset increase to $1.2 billion in Q1 2025, compared to $973.9 million in Q4 2024[27] - Cash, cash equivalents, and restricted cash decreased to $40.6 million at the end of Q1 2025 from $53.1 million at the beginning of the year[29] Market Outlook - The company is not providing updates to its previously issued consolidated full-year outlook due to macro-economic uncertainty[15] - The golf industry remains structurally healthy, with a growing number of participants and resilient rounds of play despite adverse weather conditions[5] Non-GAAP Measures - Adjusted EBITDA and Adjusted EBITDA margin are used as supplemental measures to evaluate ongoing operating performance, although specific figures were not disclosed in the provided data[34] - A non-cash gain of $20.9 million was recorded in Q1 2025 related to the FootJoy golf shoe joint venture deconsolidation[42] - The company noted that a reconciliation of non-GAAP Adjusted EBITDA to GAAP net income for 2025 is not available due to high variability and low visibility of certain charges[42]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they ...