Callaway Raises Full-Year Earnings Forecast On Back Of Cost Savings, Market-Share Gains

Callaway Golf shares on Thursday rose nearly 9% after the company "raised its full-year earnings forecast on the strength of cost savings and market share gains," according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. The company, which on Wednesday reported that Q3 sales rose 4% YOY to $176M, lost $4M, or 4 cents per share, in Q3 "mostly because of unfavorable foreign exchange rates stemming from the strong dollar." A year ago, the company "lost 1 cent per share." If foreign-exchange rates "had been the same as last year, Callaway would have earned 7 cents." Sales "were down in the rest of Asia, however, because of difficult market conditions in China." After its "solid" Q3 results, the company "boosted its full year-earnings forecast" to 12-15 cents a share. Previously, Callaway "predicted full-year net income of 1 cent to 6 cents per share" (SAN DIEGO UNION-TRIBUNE, 10/23). At press time, Callaway shares were trading at $9.65, down 0.57% from Thursday's close (THE DAILY).