Newton Golf (NASDAQ:NWTG) Posts Earnings Results

Newton Golf (NASDAQ:NWTG) posted its quarterly earnings results on Friday. The company reported ($0.49) earnings per share (EPS) for the quarter, FiscalAI reports. Newton Golf had a negative net margin of 103.02% and a negative return on equity of 476.84%. The company had revenue of $1.32 billion during the quarter.

Here are the key takeaways from Newton Golf’s conference call:

• Second-quarter sales fell to $1.3 million from $2.1 million year over year, while the net loss widened to $2.3 million, or $0.49 per share, due to manufacturing-transition disruptions, idle capacity, and related costs.
• Manufacturing throughput and supply availability improved after the quarter; shipment times were reduced to within seven business days by early August, and the company substantially fulfilled its prior $1.2 million backlog of deposits and open wholesale orders.
• Adoption indicators strengthened, with more than 77 professional golfers using Newton shafts and the club-fitter network expanding to approximately 273 accounts at quarter end. The company also reported initial orders from a significant golf-equipment OEM and ongoing evaluations with additional OEMs.
• Management believes production can scale from roughly 55,000 shafts annually today to approximately 160,000 units with planned investments, while new fairway wood and hybrid shafts are expected to launch in late 2026 or early 2027.
• Liquidity remains a concern, with $442,000 in cash at June 30 and management acknowledging the need for additional capital. The company subsequently drew $750,000 on a new $5 million revolving facility and raised approximately $0.9 million in net proceeds through a common-stock private placement.

Newton Golf Stock Performance

Newton Golf stock traded up $0.01 during trading hours on Friday, reaching $1.33. 51,131 shares of the company’s stock traded hands, compared to its average volume of 44,460. The firm’s 50 day moving average is $1.02 and its 200-day moving average is $1.24. Newton Golf has a fifty-two week low of $0.70 and a fifty-two week high of $2.07. The firm has a market capitalization of $6.10 million, a price-to-earnings ratio of -0.75 and a beta of 2.47.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings restated a “sell (e+)” rating on shares of Newton Golf in a report on Monday, June 8th. One research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock presently has an average rating of “Sell”.

Institutional Investors Weigh In On Newton Golf

Large investors have recently made changes to their positions in the stock. DRW Securities LLC acquired a new position in shares of Newton Golf during the fourth quarter worth about $27,000. Virtu Financial LLC acquired a new stake in shares of Newton Golf in the third quarter valued at approximately $28,000. Finally, Geode Capital Management LLC grew its position in Newton Golf by 45.6% in the fourth quarter. Geode Capital Management LLC now owns 41,530 shares of the company’s stock valued at $62,000 after purchasing an additional 13,001 shares in the last quarter. Institutional investors own 0.49% of the company’s stock.

About Newton Golf

Sacks Parente Golf, Inc (“SPG”) is a technology-forward golf company, with a growing portfolio of golf products, including putting instruments, golf shafts, golf grips, and other golf-related products. In April 2022, in consideration of our growth opportunities in shaft technologies, we expanded our manufacturing business to include advanced premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. We intend to manufacture and assemble substantially all products in the United States.