Callaway Golf Beats Revenue Projections For Q3 With Help From Recent Acquisitions
Callaway Golf posted "better-than-expected financial results" during Q3, according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. Callaway benefited from a 21% increase in club sales, a 20% "gain in golf ball purchases" and a 72% "rise in gear and accessories sales." The accessories gains were "led by Callaway’s recent acquisitions of backpack/golf bag maker Ogio and clothing brand TravisMathew." Callaway's $244M revenue in Q3 was higher than the $211M forecast by analysts. The results marked a 30% increase over $188M in sales for Q3 last year. Callaway "reported net income" of $3.1M, "compared with a loss" of $2.2M a year earlier. Some of Callaway’s competitors have "exited the business -- most notably" Nike, which stopped selling golf clubs and balls last year, but Callaway has "turned its business around -- steadily gaining ground on rivals over the past five years." Callaway "raised its full-year revenue forecast." It now "expects sales" of $1.03-1.04B, "up from prior estimates" of $980-995M (SAN DIEGO UNION-TRIBUNE, 10/27). At presstime, shares of Callaway were trading at $14.28, down 3.45% from the close of business Thursday (THE DAILY).