Callaway Golf (ELY) Tops Q3 EPS by 6c; Raises Outlook

Callaway Golf (NYSE: ELY) reported Q3 EPS of ($0.06), $0.06 better than the analyst estimate of ($0.12). Revenue for the quarter came in at $188 million versus the consensus estimate of $177.39 million.

GUIDANCE:

Callaway Golf sees FY2016 EPS of $0.50-$0.54, versus prior guidance of $0.40-$0.50 and the consensus of $0.44. Callaway Golf sees FY2016 revenue of $870-880 million, versus the consensus of $869.56 million.

"We were pleased to see our continued momentum in the marketplace in the third quarter," commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company. "Despite industry headwinds and softer than expected market conditions, we grew our net sales in the third quarter. We also continued to realize benefits from the comprehensive strategic initiatives we undertook during the last three years, including working capital improvements and the extension of product life cycles, with gross margins improving 110 basis points year to date and cash generated from operating activities increasing over 200% to $86 million for the first nine months of 2016 compared to the same period in 2015."

Mr. Brewer continued, "I am confident we are on track to create long-term shareholder value through our improved core business as well as future growth from strategic ventures within golf or in areas tangential to the golf equipment business. For instance, during the third quarter, we acquired Toulon Design and hired its founder, Sean Toulon, to run our putter business. I couldn't be more excited about the opportunity to expand the Odyssey brand as we extend our reach further into the super-premium putter category through Toulon Design by Odyssey. We are also re-investing in the future of our golf ball business via further investment in R&D and today's announced hiring of Rock Ishii, former Sr. Director of Golf Ball Innovation at Nike. Looking forward, we will continue to opportunistically seek new strategic growth platforms and strategic high return investments in our core business. We will also continue to strengthen our core business through disciplined operational execution and the introduction of technologically advanced products. We are very excited about our product line for 2017."

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

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