Callaway expects lower earnings

From Times Staff and Wire Reports

Callaway Golf Co. posted quarterly earnings that beat Wall Street estimates and said it now expected full-year profit at the low end of its forecast.

The Carlsbad-based company, which has been cutting costs and making its operations more efficient, said first-quarter net income grew to $39.7 million, or 61 cents a share, from $32.8 million, or 48 cents, a year earlier.

The results included a 1-cent-a-share charge related to margin improvement efforts. Analysts had been looking for 60 cents a share, according to Reuters Estimates.

Revenue was $366.5 million, up nearly 10%.

Among other things, Callaway said revenue got a boost from foreign currency exchange rates and sales of fairway wood clubs related to its FT and FT-i product launches.

The company had said it saw full-year earnings, excluding items, of $1.08 to $1.18 a share. It now expects earnings at the lower end of that range because of economic uncertainty and competition.

Callaway shares rose 23 cents to $13.97, then fell 2 cents in after-hours trading.

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