Callaway Golf Earnings: What Investors Should Watch

Callaway Golf (NYSE:ELY) will report earnings after markets close on Thursday, July 25th. Callaway Golf Company designs, develops, manufactures, and markets golf clubs, which are sold to both average and skilled golfers. The Company’s products include titanium drivers, fairway woods, irons, wedges, and various putters. Callaway’s products are sold under brand names such as Big Bertha, Hawk Eye, and Odyssey.

Here is your Cheat Sheet to Callaway Golf Earnings:

Earnings Expectations: Analysts expect earnings of $0.11 per share on revenues of $253.20 million.

Analyst Trends:

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 loss of $0.17 to a loss $0.24. For the current year, the average estimate is a loss of $0.07, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Callaway Golf has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,117 951 968 887 834
Diluted EPS ($) 1.04 -0.33 -0.46 -2.82 -1.98

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 281.12 147.91 117.88 287.76
Diluted EPS ($) 0.00 -1.33 -1.03 0.47

Past Performance:
Callaway Golf has beat analyst estimates 1 time in the past four quarters. This is not consistent enough to get bullish yet.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

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