Callaway Golf Q4 Loss Narrows, Revenue Rises - Update

(RTTNews) - Callaway Golf Co. (ELY), which sells golf clubs and golf balls, Wednesday said fourth-quarter loss narrowed from the year-ago period, supported by higher revenues despite a late start to the golf season. The company also issued full year 2014 outlook on a GAPP basis. The stock fell nearly 6 percent in the extended trade.

Net loss allocable to common shareholders for the quarter totaled $49.5 million or $0.65 per share compared to $71.53 million or $1.01 per share in the same period last year.

Adjusted loss was $0.34 per share, while it totaled $0.48 per share last year. On average, eight analysts polled by Thomson Reuters expected the company to report a loss of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.

Sales increased to $127.17 million from $119.94 million last year. Analysts expected sales of $122.09 million for the quarter.

According to the company, these results were achieved despite a late start to the golf season in the Americas and Europe due to weather, adverse changes in foreign currency rates, and a significantly reduced base business due to the sale of the Top-Flite and Ben Hogan Brands in 2012.

Looking ahead, the company currently projects full-year earnings in the range of $0.12 to $0.16 per share, compared to a loss per share of $0.31 in 2013 that included items. Analysts expect full-year earnings of $0.21 per share

Sales for 2014 are currently estimated to range from $880 to $900 million, compared to $843 million in 2013. Analysts expect $899.19 million for the year.

ELY closed down 1 percent on Wednesday at $8.71 and dropped 6 percent in the extended trade.