Callaway Golf Issues 2017 Guidance

(RTTNews) - Callaway Golf Company (ELY) announced the company expects 2017 GAAP net sales to be in a range of $910 - $935 million. The pro forma constant currency net sales growth of 8% - 11% to a range of $938 - $963 million is expected to be driven by the strength of the company's 2017 product line, growth from the OGIO acquisition and the full year impact of the Japan apparel joint venture. The company estimates that its fully diluted pro forma constant currency earnings per share will increase $0.07 - $0.13 from 2016 to a range of $0.31 - $0.37. GAAP earnings per share is anticipated to be in a range of $0.17 - $0.23.

The company noted that its acquisition of OGIO International, Inc., which was completed in January 2017, is expected to contribute approximately $45 million in revenue for full year 2017. After absorbing non-recurring transaction and transition expenses of approximately $7 million, OGIO is expected to be dilutive by approximately $0.02 to Callaway's 2017 earnings per share, but is expected to be accretive thereafter. The company's 2017 pro forma estimates exclude non-recurring transaction and transition expenses related to the OGIO acquisition, which are estimated to be approximately $7 million for full year 2017.