Callaway Golf Earnings: Everything You Must Know Now

Callaway Golf Co. (NYSE:ELY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Callaway Golf Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 83.33% to $0.33 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Rose 1.02% to $288 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Callaway Golf Co. reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.21. It beat the average revenue estimate of $284.4 million.

Quoting Management: “I am very pleased with our overall results this quarter,” commented Chip Brewer, President and Chief Executive Officer. “The strength of our 2013 product line, including our new X Hot products and Versa line of putters, allowed us to achieve a 12% increase in net sales on our current business on a constant currency basis. In addition, we are beginning to see the results of the many cost-reduction and other initiatives we took in 2012, which contributed to improvements in gross margins and operating expenses, and all of which culminated in a $23 million increase in non-GAAP operating income for the first quarter of 2013. However, it is still early in the year, and the second quarter always has a big impact on our ability to achieve our full year financial targets. With that said, the first quarter was an important first step in our multi-year turnaround plan and we are pleased to report our turnaround is on track.”

Key Stats (on next page)…

Revenue increased 140.12% from $119.94 million in the previous quarter. EPS increased to $0.33 in the quarter versus EPS of $-0.49 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.19 to a profit $0.14. For the current year, the average estimate has moved down from a profit of $0.01 to a loss of $0.06 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]