GOLF - 4 Reasons Acushnet Holdings Will Thrive Despite a Golf Ball Shortage

Avoiding the metaphorical sand traps of the COVID-19 lockdown economy, the golf sector has seen soaring consumer interest and equipment sales -- an opportunity Acushnet Holdings (NYSE: GOLF) has seized with both hands. The maker and seller of "performance-driven golf products" including shoes, clothing, clubs, golf balls, and other equipment recently posted its second-quarter results, outstripping not only last year but 2019, too. While it faces a few problems related to supply chains and other matters, there are at least four reasons it could continue to grow over the coming quarters.

Acushnet has been outperforming the S&P 500 since March 2018, managing to surpass the index even during the early 2020 COVID-19 crash despite a sharp drop in its share value. As of mid-August 2021, it has gained 197% over the past five years compared to the S&P 500's 92.9% rise.

The growth shown in Q2 2021 doesn't just surpass the pandemic-cratered results of Q2 2020 by 108.3%, but it also beats pre-pandemic Q2 2019 by 35.2%. This is a key point because it shows the growth is strong and long-term rather than just a rebound from last year's deep lows. Adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, rose 68.8% from 2019 and 286.1% from 2020, while net income also grew solidly. All of this was achieved efficiently, with quarterly capital expenditure, or capex, rising from $10 million in 2020 to just $12 million this year.

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