Golf equipment and clothing manufacturer Callaway Golf Co. announced Oct. 16 that it expects a third-quarter loss. Wall Street analysts had expected a profit.
For the third quarter ended Sept. 30, net revenue is expected to be between $193 million and $195 million , roughly a 12 percent drop from $221 million for the same period in 2005. The company estimates loss per diluted share to be between 17 and 19 cents, which includes stock-based employee compensation expenses and after-tax charges for company restructuring.
President and Chief Executive Officer George Fellows said that sales of Callaway’s Top-Flite golf balls and its Hogan line of products have “not performed to expectations,” offsetting gains from the company’s core brands.
Callaway Golf is traded on the New York Stock Exchange as ELY and closed Oct. 16 at $14.10, up 5 cents from the previous close. In the middle of the trading day Oct. 17, Callaway was down nearly 11 percent to $12.56.
, Andy Killion