Callaway Golf Company reported that its second quarter earnings per share will increase due to its work on back-end operations, despite a 3.7% decrease in net sales. For Q2, net sales should decline to $366 million from $380 million last year. However, second quarter diluted earnings per share will increase approximately 8% to a range of 56 cents to 58 cents per share from 53 cents for the year-ago quarter. These results include after-tax charges of 5 cents per share in 2008 and 2 cents per share in 2007 associated with the gross margin initiatives announced in November 2006.
CEO George Fellows commented in a release that the companys international business provided growth, but sales declined in the U.S..
Diluted earnings per share for the first half of 2008 are estimated to range from $1.17 to $1.19, an increase of approximately 17% versus $1.01 in the first half of 2007. These results include after-tax charges associated with the gross margin improvement initiatives of 6 cents and 3 cents per share for 2008 and 2007, respectively. Net sales for the period are estimated at $732 million, an increase of 2% over 2007 sales of $715 million.
Diluted earnings per share for the first half of 2008 are estimated to range from $1.17 to $1.19, an increase of approximately 17% versus $1.01 in the first half of 2007. These results include after-tax charges associated with the gross margin improvement initiatives of 6 cents and 3 cents per share for 2008 and 2007, respectively. Net sales for the period are estimated at $732 million, an increase of 2% over 2007 sales of $715 million.
The company reiterated its full year guidance of $1.15 billion to $1.17 billion in revenue and pro forma fully diluted earnings per share of $1.08 to $1.18 per share, excluding estimated charges of approximately 8 cents per share for the companys gross margin initiatives. That estimate was once again clarified with the statement that earnings per share should be at the lower end of the estimated range.
