New Driver Leads Callaway To 43% Increase In Q1 Net Income

Callaway’s FT-I Helps Drive Up Q1 Net Income

Callaway Golf announced Q1 net income rose 43%, as the company “saw strong demand for its new products including the FT-i, its square-head driver,” according to Jennifer Davies of the SAN DIEGO UNION-TRIBUNE. Earnings increased to $32.8M, or $0.48 per share, compared with $22.9M, or $0.33 per share, a year earlier. Revenue jumped 11% to $334.6M for the quarter ended March 31. The results are “at the top end of a range the company announced in April.” Callaway President & CEO George Fellows said, “Things are progressing as we projected. Clearly, the second quarter is going to be a very telling quarter for us.” But Web Street Golf Report Editor Terry McAndrew said that “despite management’s caution regarding the rest of the year, Callaway seems poised to recapture some of the business that has been lost in the past few years.” McAndrew: “It looks like they are on their way to the strongest year they’ve had in some time” (SAN DIEGO UNION-TRIBUNE, 5/4). At presstime, shares of Callaway were trading at $18.45, up $0.99 from yesterday’s close of $18.27 (THE DAILY).