Callaway Golf Increases Full Year Sales, Earnings Guidance

(RTTNews) - Callaway Golf Company (ELY) increased its 2017 non-GAAP earnings per share guidance to $0.47 - $0.51 due to the projected increase in net sales. The company currently estimates full year 2017 net sales of $1.03 - $1.04 billion, which includes approximately $15-$20 million of TravisMathew sales. This would result in net sales growth of 18% - 19% in 2017 compared to 2016. The company currently estimates that its 2017 gross margin will be in-line with the prior estimate.

On a non-GAAP basis, the company would have reported earnings per share for the third quarter of 2017 of $0.05, compared to a loss per share of $0.03 for the third quarter of 2016. For the third quarter of 2017, net sales increased to $244 million compared to $188 million for the same period in 2016.

The company said the 30% increase in net sales is attributable to the strength of the 2017 product line, including continued success of the current year EPIC driver and fairway woods, increased golf ball sales, and increased net sales of gear, accessories and other primarily as a result of the recent acquisitions of OGIO and TravisMathew.