Carlsbad's Callaway Golf Reports Q1 Net Income of $26 MillionMonday, May 8, 2017
Callaway Golf Co. reported a “better than expected” first quarter, with net income of $26 million, or 27 cents per share, on net sales of $309 million.
Sales increased 13 percent over the same quarter in 2016, when they were $274 million. Net income in the year-ago quarter was $38 million, or 40 cents per share.
The Carlsbad-based business increased its full year guidance range by $45 million to $50 million. It forecast total 2017 revenue in the range of $960 million to $980 million. Callaway (NYSE: ELY) had net sales of $871 million in 2016.
Callaway makes golf balls and clubs, and acquired Utah-based bag maker Ogio International Inc. for $75.5 million in January. The acquisition brought $4 million in expenses during the first quarter.
In a prepared statement, CEO Chip Brewer said 2017 was off to “a very strong start.” Sales of new products such as the Epic driver and the Chrome Soft X golf ball have exceeded expectations, he said. The driver has a unique structure that Callaway calls Jailbreak Technology.
The Ogio business and an apparel joint venture in Japan are performing ahead of plan, Brewer said.
Callaway has a conventional fiscal year, with the first quarter ending March 31.