Callaway Golf (ELY) Posts Smaller-than-Expected Q4 Loss

Callaway Golf (NYSE: ELY) reported Q4 EPS of ($0.54), $0.02 better than the analyst estimate of ($0.56). Revenue for the quarter came in at $135 million versus the consensus estimate of $138.9 million.

Callaway reported full year sales growth of 5% for 2014 driven by growth in most major product categories (woods +8%; irons +12%; golf balls +4%; and accessories and other +2%) and growth in all geographic segments (United States +5%; Japan +3%; Europe +11%; Rest of Asia +7%; and Other foreign countries +1%). Additionally, income from operations improved significantly to $31 million compared to a loss of ($11) million in 2013 and fully diluted earnings per share increased to $0.20 compared to a loss of ($0.31) in 2013. This positive turnaround was driven by the increase in sales, improvements in gross margins of 310 basis points, and flat operating expenses, all of which more than offset an approximately $6 million increase in other expense due to a decrease in foreign currency contract gains. The 2014 results also benefitted from a $17 million decrease in pre-tax charges related to the cost reduction initiatives that were completed in 2013.

For earnings history and earnings-related data on Callaway Golf (ELY) click here.

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