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LONDON, UK / ACCESSWIRE / March 08, 2018 / Active-Investors.com has just released a free earnings report on Callaway Golf Co. (NYSE: ELY). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ELY. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on February 07, 2018. The maker of golf equipment and accessories outperformed top- and bottom-line expectations, and also provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Callaway Golf most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the fourth quarter of FY17, Callaway Golf's net sales increased 17% to $192 million compared to $164 million in Q4 2016. The increase was attributable to the continued success of the EPIC driver and fairway woods, and increased net sales of gear, accessories, and other, primarily as a result of the Company's recent acquisitions of OGIO and TravisMathew. Callaway Golf's revenue numbers topped analysts' estimates of $183.1 million.
For the full fiscal year 2017, Callaway Golf's net sales jumped 20% to $1.05 billion compared to $871 million in FY16.
During Q4 2017, Callaway Golf's gross margin increased 300 basis points (BPS) to 41.6% compared to 38.6% in Q4 2016. The 300-basis point increase was primarily due to a favorable shift in product mix toward the higher margin EPIC woods, combined with overall higher average selling prices.
For Q4 2017, Callaway Golf's operating expenses increased 25% to $100 million compared to $80 million in Q4 2016, primarily due to the addition, in FY17, of operating expenses from the consolidation of the OGIO and TravisMathew businesses, higher variable expense due to the increase in sales, and increased spend in research, marketing, and tour.
Callaway Golf's net loss was $19 million, or $0.20 loss per share, in Q4 2017 compared to earnings of $123 million, or $1.28 per share, in Q4 2016. On a non-GAAP basis, which excludes the impact of the non-recurring OGIO and TravisMathew transactions and transition-related expenses; non-cash tax adjustments in 2017; and the reversal of the valuation allowance in FY16; the Company would have reported a loss per share of $0.15 in Q4 2017 compared to a loss per share of $0.09 in Q4 2016. Callaway Golf's adjusted results beat Wall Street's estimates for a loss of $0.17 per share.
For FY17, Callaway Golf reported earnings of $41 million, or $0.42 per share, compared to $190 million, or $1.98 per share, in FY16. On a non-GAAP basis, the Company would have reported earnings per share (EPS) of $0.53 in FY17 compared to $0.24 in FY16.
During Q4 2017, Callaway Golf's Woods segment's net sales surged 36.9% to $45.21 million compared to $33.02 million in Q4 2016. The Company's Irons segment's net sales totaled $48.45 million, down 10.4% compared to $54.11 million in the year earlier same quarter.
For Q4 2017, Callaway Golf's Putter segment's net sales fell 7.4% to $13.43 million versus $14.52 million in Q4 2016. The Company's Golf Balls segment's net sales dropped 15.1% to $26.49 million versus $31.21 million in the prior year's comparable quarter. Callaway Golf's Gera/Accessories/Other segment's net sales soared 88.2% to $58.07 million in Q4 2017 compared to $30.85 million in Q4 2016.
For the full fiscal year 2018, Callaway Golf is forecasting a net sales growth of 6% to 8%. The increase would be driven by a growth of 2% - 3% in the core business, with the balance coming from a full year of TravisMathew operating results, as well as a continued double-digit growth in that business.
For FY18, Callaway Golf is estimating its gross margin to be approximately 50 basis points higher than in FY17. This increase would be driven by continued pricing opportunities as well as a positive mix benefit of the TravisMathew business, which generally has higher gross margins than the Company's equipment business.
For Q1 2018, Callaway Golf is projecting net sales growth to be of 18% - 21%, driven by a launch timing in the core business, as well as the addition of the TravisMathew business.
Stock Performance Snapshot
March 07, 2018 - At Wednesday's closing bell, Callaway Golf's stock marginally advanced 0.06%, ending the trading session at $16.16.
Volume traded for the day: 686.37 thousand shares.
Stock performance in the last month – up 13.24%; previous three-month period – up 9.78%; past twelve-month period – up 50.47%; and year-to-date – up 16.01%
After yesterday's close, Callaway Golf's market cap was at $1.50 billion.
Price to Earnings (P/E) ratio was at 32.26.
The stock has a dividend yield of 0.25%.
The stock is part of the Consumer Goods sector, categorized under the Sporting Goods industry.
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