GOLF - Acushnet Holdings stock swings higher on strong sales forecast

Acushnet ( NYSE: GOLF ) stock rose sharply on Wednesday on a Q4 earnings beat and more bullish than expected guide for 2023.

For the fourth quarter, the company notched adjusted EBITDA of $25.4M, above the $19.3M consensus expectation. Meanwhile, a 6.4% jump in revenue to $447.4M came in $23.9M above estimates.

“Titleist golf balls continue to be the overwhelming choice of PGA and LPGA Tour players, and Pro V1 golf balls were the winning choice of all four men’s Major Champions in 2022,” CEO David Maher said. “We are pleased with our ability to grow sales in this segment despite raw material availability challenges during the year. Double digit sales growth in our Titleist golf club, Titleist gear and FootJoy golf wear segments was driven by a wide range of innovative new products, including new TSR drivers that quickly became the most played model on the PGA Tour.’

He added that the US golfer population continues to increase, with promising trends outside the US as well. He added that he continues to expect growing capacity within its supply chain and capitalize on rising demand.

The company projected between $2.33B and $2.38B for the full year, above the $2.25B consensus. Adjusted EBITDA is expected to be between $345M to $365M, above the $342.6M Street consensus forecast.

Shares of the Fairhaven-based golf products company rose 7.34% shortly after Wednesday’s market open.

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