Can Acushnet Holdings (GOLF) Continue To Hole More Putts?

Shares of Acushnet Holdings Corp. (GOLF) are up 3 percent over the last three trading days.

Founded in 1910, Acushnet is the maker of the top-selling Titleist golf ball and FootJoy Golf Wear. The Company’s target market is dedicated golfers who are the cornerstone of the worldwide golf industry.

There were over 50 million golfers worldwide in 2018. The U.S. remains the best-supplied golf market in the world with 14,613 facilities and 16,693 courses, according to a recent report by the National Golf Foundation.

For Acushnet, the United States accounts for over 40% of its addressable market, followed by Japan and Korea collectively accounting for over 30% of the addressable market.

In 2018, the net income attributable to the Company was $99.87 million or $1.34 per share on net sales of $1.63 billion. This compared with net income attributable to the Company of $98.69 million or $1.33 per share and net sales of $1.56 billion in 2017.

In the third quarter ended September 30, 2019, the results of which were announced in October, the net income attributable to Acushnet was $29.79 million or $0.39 per share on net sales of $417 million. The third-quarter 2019 net income represents nearly 320% growth and net sales reflect 12.6% jump over the comparable year-ago quarter.

Looking ahead to full-year 2019, the net sales are expected to be approximately $1.66 billion to $1.68 billion.

With the Company bringing innovative and new products to market and effectively meeting the performance and design needs of dedicated golfers through the first three quarters of 2019, it is optimistic of building upon the market momentum, delivering a strong close to the year and setting the stage for continued success in 2020.

Acushnet also pays a quarterly cash dividend of $0.14 per share.

As of September 30, 2019, the Company had cash of $52.1 million and total debt outstanding of $418.0 million.

GOLF has traded in a range of $20.24 to $31.18 in the last 1 year. The stock closed Thursday’s trading at $31.06, up 1.80%.

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