![]() ![]() Your feedback helps improve Perfect Putt. Time will tell if this was the right decision. The strategic pivot by Drive Shack begs the question - is it the correct business move? American Golf and Drive Shack had exceptional growth years in 2021. They have six locations worldwide, with nine in the pipeline. Rory McIlroy’s VC firm, Symphony Ventures, has invested $10 million in Puttery. Considering Drive Shack’s revenue of $281 million, investing $75 million in a developing business unit representing 1% of total revenue is significant. ĭuring the earnings call, Drive Shack CFO, Mike Nichols, stated they will need approximately $75 million of additional capital to finalize the 2022 development and partially fund the development of 2023 Puttery venues. Drive Shack venues brought in an average of $10 million in 2021. It is also worth noting that Topgolf owns this space with over 70 venues and an average venue brings in around $20 million. The development cost and development time are more attractive, and it returns a higher development yield. This strategy does make sense when looking at the unit economics. They plan to build 50 Puttery venues by the end of 2024 and only add one Drive Shack venue in the same period. It seems that Drive Shack has pivoted within its golf entertainment strategy by focusing on Puttery venues instead of Drive Shack venues. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.Here is the interesting thing. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.Įmpirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. While Drive Shack has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.ĭrive Shack shares have added about 11.8% since the beginning of the year versus the S&P 500's gain of 4.9%. The company has topped consensus revenue estimates two times over the last four quarters. This compares to year-ago revenues of $71.82 million. Over the last four quarters, the company has surpassed consensus EPS estimates two times.ĭrive Shack, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $60.29 million for the quarter ended December 2020, surpassing the Zacks Consensus Estimate by 11.23%. A quarter ago, it was expected that this real estate investment trust would post a loss of $0.20 per share when it actually produced a loss of $0.16, delivering a surprise of 20%. ![]() This quarterly report represents an earnings surprise of 172.22%. These figures are adjusted for non-recurring items. This article is reserved for subscribers Signed up already Not subscribed yet Latest news about Drive Shack Inc. My name is Gretchen, and I will be your conference o. This compares to loss of $0.25 per share a year ago. Transcript : Drive Shack Inc., Q2 2022 Earnings Call, Augat 09:00 am Presentation Operator MessageOperator (Operator)Good morning. Drive Shack (DS) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of a loss of $0.18 per share. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |