SBD/April 26, 2013/FinancePrint All
Callaway Golf "swung to a larger profit in the first quarter compared with last year, thanks in part to restructuring and earlier product launches," according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. Callaway posted sales of $288M and a profit of $42M, or 47 cents per share in Q1. That is "up from revenue" of $285M and earnings of 37 cents a share for the same quarter last year. Wall Street analysts "had forecast" $284.5M in sales and earnings of 21 cents a share for Q1. Callaway President & CEO Chip Brewer "cautioned that poor weather this spring in Europe and in parts of North America stunted the start of the golf season." Callaway also "faces headwinds from foreign exchange rates -- particularly in Japan." As a result, the company "lowered its full year sales forecast" from $850M to $830M. But Callaway "maintained its full-year estimate for earnings -- saying it expects to break even or post a 4 cents a share loss, excluding certain charges." The company has "struggled recently in the wake of a weak global economy and stiff competition, especially from" TaylorMade-adidas Golf. Callaway's woods sales were up 10% while putter sales increased 35% year over year. Part of those "gains stemmed from releasing new products earlier this year" than in '12. But Brewer said that he was "pleased with the rate in which the company’s products were selling, particularly its X-Hot fairway woods" (SAN DIEGO UNION-TRIBUNE, 4/26). At presstime, shares of Callaway Golf were trading at $6.47, down 0.61% from the close yesterday (THE DAILY).