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Callaway Golf (ELY) Misses Q1 EPS by 4c; Not Providing Guidance

May 7, 2020 4:26 PM EDT

Callaway Golf (NYSE: ELY) reported Q1 EPS of $0.30, $0.04 worse than the analyst estimate of $0.34. Revenue for the quarter came in at $442 million versus the consensus estimate of $460.11 million.

"We are pleased that during the first quarter of 2020 our golf equipment market shares remained strong in all of our major markets and that we were able to deliver a profitable quarter despite the negative impact of COVID-19,\" commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company (the \"Company\"). \"In fact, through early March we were on track for another record sales year, which would have made it our fourth consecutive record year. While the COVID-19 pandemic will have a significant impact on our results in the short-term, we believe we will be well positioned to emerge from this pandemic. Our golf and outdoor lifestyle businesses support an active and healthy lifestyle that is compatible with a world of social distancing. We are also pleased that we are beginning to see some signs of recovery, particularly in those regions that were first affected."

Mr. Brewer continued, "The issuance of our convertible notes was well received by the market, allowing us to obtain favorable pricing and terms. This additional liquidity will provide a comforting backstop in the event that the duration or impact of the COVID-19 pandemic is longer or more severe than anticipated. I want to emphasize, however, that having this additional liquidity will not lessen our resolve for, and we remain committed to, maintaining our disciplined approach to managing capital and expenses. We believe that this additional liquidity, together with the strength of our brands, our product and geographic diversity, and the operational improvements we have made to date, will enable us to create shareholder value as we emerge from this pandemic."

GUIDANCE:

The Company previously reported that due to the uncertain duration or full impact of the COVID-19 pandemic, the Company is no longer providing financial guidance at this time.

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



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