Callaway Lifts 2014 EPS Guidance; Warns Of Foreign Exchange Impact In 2015

(RTTNews) - Callaway Golf Co (ELY), the maker of golf clubs and balls, on Monday increased its 2014 earnings guidance to $0.17 - $0.19 per share compared to prior guidance of $0.15 - $0.18 per share.

Analysts polled by Thomson Reuters currently expect the company to report earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.

Callaway continues to expect 2014 sales of $890 million, while analysts expect the company to report sales of $891.3 million.

The company warned that if the recent strengthening of the U.S dollar persists or strengthens further, it will have a significant unfavorable impact on its reported results for 2015.

Callaway is revising its 2015 guidance by providing guidance on a constant currency basis and by discontinuing its prior guidance on a GAAP basis. The company previously estimated for 2015 on a GAAP basis sales growth of 1% - 2% and steady improvement in profitability.

The company is estimating for 2015, on a constant currency basis compared to 2014, sales growth of 2% - 3% and earnings per share growth nearing 100% based upon 2014 expected results.

Callaway confirmed that the sole reason for the revised guidance is the significant volatility in the foreign currency exchange markets over the last two months.