NEWS: Callaway Golf Co. reported that its third-quarter loss narrowed from a year ago as it saw strong sales. The company's results were better-than-expected and it boosted its 2013 outlook, sending shares surging 14 percent in after-hours trading.
DETAILS: Callaway Golf said it was able to increase revenue despite adverse changes in foreign currency, the sale in 2012 of the Top Flite and Ben Hogan brands, and the transition to a licensing arrangement for clothing and footwear in North America. The company said that its results also benefited from cost cutting and more efficient operations.
NUMBERS: Callaway Golf reported a loss of $21 million, or 32 cents per share, in the three months ended Sept. 30. That compares with a loss of $87 million, or $1.33 per share, in the year-ago period. Revenue rose 20 percent to $178 million from $148 million in the year-ago period.
Excluding one-time items, it said it would have posted a loss of 18 cents a share.
Analysts expected an adjusted loss of 28 cents per share on revenue of $152.6 million for the third quarter, according to FactSet estimates.
FUTURE: Based on stronger-than-expected third-quarter results, Callaway increased its full-year 2013 revenue guidance to $836 million, from a previous range of $810 million to $820 million. For the full year, it now expects to post bottom-line results ranging from a loss of 3 cents a share to a profit of 1 cent a share. Previously, it expected a range of a loss 12 cents to a loss of 4 cents a share.
For the full year, analysts expect a loss of 7 cents on revenue of $814.1 million, according to FactSet.
STOCK: Shares of Callaway rose $1.04 to $8.30 in after-hours trading. That was after closing down 7 cents to $7.26 in regular market trading.