Callaway (ELY) Sinks on Anticipated Q2 Loss, Shares Down Over 7%
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Callaway Golf Co. (NYSE: ELY) is down over 7 percent after-hours, following preliminary Q2 results.
As reported, Callaway sees second-quarter 2011 net loss of $55 million. The Street had been anticipating earnings in the quarter.
The outlook includes $48 million in non-cash charges.
From the release: "The Company's U.S. business, which has been adversely affected by the recent economic downturn and continued investment in the final phase of the Company's global operations strategy, has not yet returned to profitability. As a result, U.S. accounting rules require that the Company establish the valuation allowance. The Company expects to be able to reverse the allowance in future periods as the Company's U.S. business returns to profitability. The net loss for the quarter also includes charges of approximately $8 million related to the organizational changes and approximately $4 million related to the Company's global operations strategy."
As reported, Callaway sees second-quarter 2011 net loss of $55 million. The Street had been anticipating earnings in the quarter.
The outlook includes $48 million in non-cash charges.
From the release: "The Company's U.S. business, which has been adversely affected by the recent economic downturn and continued investment in the final phase of the Company's global operations strategy, has not yet returned to profitability. As a result, U.S. accounting rules require that the Company establish the valuation allowance. The Company expects to be able to reverse the allowance in future periods as the Company's U.S. business returns to profitability. The net loss for the quarter also includes charges of approximately $8 million related to the organizational changes and approximately $4 million related to the Company's global operations strategy."
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