Callaway Golf sees flat profit, sales for 2nd quarter; forecast misses analyst estimates

Callaway Golf expects flat profit, sales for 2Q

CARLSBAD, Calif. — Callaway Golf Co. on Monday said it expects its second-quarter profit and revenue to be roughly flat with the year-ago quarter, but well below Wall Street forecasts.

Shares fell sharply in after-hours trading following the announcement.

The golf clubs and accessories maker said it expects earnings per share between 10 cents and 15 cents for the quarter, including a penny per share in restructuring charges. Net sales are expected to fall between $295 million to $305 million, the company said.

In the year-ago period, the company recorded profit of 10 cents per share on $302 million in revenue.

Analysts polled by Thomson Reuters forecast profit of 33 cents per share on revenue of $328.2 million. Analyst estimates typically exclude one-time items.

Callaway President and CEO George Fellows said the company’s estimate reflects the pace of the worldwide economic recovery. “Based upon current trends, however, it appears that the recovery will be slower than we had expected,” he said. “The increased economic and political instability in Asia and Europe, the tentative nature of consumer spending so far this year in the United States, and unfavorable weather conditions in many of the company’s key markets this year, are all factors slowing the pace of the recovery.”

The company still expects to post a profit for the year.

Callaway is slated to post second-quarter results on July 28.

In aftermarket electronic trading, Callaway Golf shares fell 64 cents, or 8.4 percent, to $6.96. The stock earlier slid 28 cents, or 3.6 percent, to end regular trading at $7.60. The stock has ranged from $4.66 to $10.19 over the past year.