Callaway Golf Company is forecasting approximately $323 million in sales for the second quarter ended June 30, also estimating that diluted EPS for the period will be in the 25 cents to 27 cents per share range. Excluding integration charges of approximately three cents per diluted share associated with the consolidation of the Top-Flite and Callaway Golf operations, pro forma earnings per diluted share are estimated to range from 28 cents to 30 cents.
Analysts were looking for 35 cents a share on $303 million in sales for the quarter.
ELY said that it is continuing to see steady improvements in its business this year. Preliminary results suggest that the second quarter will generate growth in sales compared with both the second quarter of 2004 and the first quarter of 2005, although earnings growth will be tempered by planned spending increases related to brand investment and third quarter product launches.
Management said the brand is “experiencing stronger demand and sell-through at retail” for its current products versus last year, and does not anticipate discounting issues in the second half of 2005 similar to those faced in 2004. As a result, the company expects significant year-over-year improvements in Q3 earnings, but gave no guidance for the quarter.
