Callaway Golf Company shares fell 11.2% last week to close at $15.15 on Friday after the company issued revised first quarter sales and earnings guidance that fell short of Wall Street expectations. ELY is estimating that first quarter earnings per share will be in the range of 31 cents to 33 cents per share, or 34 cents to 36 cents per share excluding one-time items and stock option expenses, on sales of roughly $300 million. Analysts were looking for 48 cents per share.
Callaway posted earnings of 27 cents per share, or 30 cents per share excluding Top-Flite integration expenses, on sales of $300 million in the year-ago period.
The company said results were hurt by the later timing of its 2006 new product introductions compared with last year.
In a release to the media, company President and CEO George Fellows said they were pleased with their preliminary results for the quarter. He said the results, which are estimated to be 13% to 20% higher than pro forma earnings last year, exceeded internal targets and achieved the second highest level of revenues for any first quarter in the Company's history.
