Callaway Golf Boosts Financial Forecast For '16, Citing Improving Market Trends

Callaway Golf yesterday "boosted its full-year financial forecast," citing "improved market conditions in the golf industry," according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. Callaway during a Q1 earnings call said that there is "less discounting by rivals and more reliable foreign exchange rates -- two things that dragged down the company’s results last year." The company for Q1 posted earnings of $38.4M, or $0.40 per share, on sales of $274M. Callaway last year reported Q1 earnings of $0.39 a share on revenue of $284M. For the full year, Callaway "now forecasts sales" around $868M, up from $844M in '15. It predicts earnings per share of about $0.45, up from $0.17 in '15. A "good portion of the earnings gain comes from Callaway’s sale of a portion of its ownership stake in Dallas-based Topgolf." Callaway will net $18M "from the sale later this year" (SAN DIEGO UNION-TRIBUNE, 4/28). At presstime, Callaway shares were trading at $9.57, up 2.57% from yesterday's close (THE DAILY).