Newton Golf (NASDAQ:NWTG) Announces Earnings Results

Newton Golf (NASDAQ:NWTG) announced its quarterly earnings data on Friday. The company reported ($0.49) 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 business 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

NASDAQ:NWTG traded up $0.01 during trading hours on Friday, reaching $1.33. The company’s stock had a trading volume of 51,131 shares, compared to its average volume of 21,899. The stock has a 50 day moving average price of $1.03 and a two-hundred day moving average price of $1.25. The company has a market capitalization of $6.11 million, a P/E ratio of -0.75 and a beta of 2.47. Newton Golf has a 12 month low of $0.70 and a 12 month high of $2.07.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a “sell (e+)” rating on shares of Newton Golf in a research note on Monday, June 8th. One analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company currently has a consensus rating of “Sell”.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in NWTG. Virtu Financial LLC bought a new stake in Newton Golf during the third quarter valued at about $28,000. DRW Securities LLC bought a new position in Newton Golf in the fourth quarter worth about $27,000. Finally, Geode Capital Management LLC raised its holdings in Newton Golf by 45.6% in the fourth quarter. Geode Capital Management LLC now owns 41,530 shares of the company’s stock worth $62,000 after purchasing an additional 13,001 shares in the last quarter. 0.49% of the stock is currently owned by hedge funds and other institutional investors.

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.