Callaway Golf’s Loss Narrows; Sales Jump
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Callaway Golf Co. on Wednesday posted a narrower third-quarter loss as a 72% jump in sales exceeded Wall Street expectations, but earnings were hampered by restructuring costs.
Carlsbad-based Callaway said it lost $4.8 million, or 7 cents a share, compared with a loss of $35.9 million, or 53 cents, a year earlier. Revenue rose to $220.6 million.
Excluding an after-tax charge of 8 cents a share related to the integration of the recently acquired Top-Flite golf ball manufacturer and restructuring efforts, quarterly earnings per share were 1 cent, contrasted with an adjusted net loss per share of 46 cents a year earlier. On that basis, analysts on average were expecting a loss of 1 cent a share according to Reuters Estimates.
Chief Executive George Fellows said that Callaway “can do better in profitability,” and said restructuring efforts and subsequent plans to target gross margins “will allow us to maximize shareholder value.”
Callaway is slashing about 500 jobs as part of a company-wide reorganization.
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