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Callaway Golf Reports Mixed Q4 Earnings, Says Coronavirus Will Have Negative Impact

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Callaway Golf Reports Mixed Q4 Earnings, Says Coronavirus Will Have Negative Impact

Callaway Golf (NYSE: ELY) reported fourth-quarter losses of 26 cents per share on Monday, which missed the analyst consensus estimate by two cents.

The company reported quarterly sales of $311.9 million, which beat the analyst consensus estimate of $305.3 million by 2.16%. This is a 72.63% increase over sales of $180.678 million the same period last year.

Callaway said the coronavirus is expected to have a negative impact of $25 million on net sales and $13 million on adjusted EBITDA.

Callaway Sees first-quarter GAAP EPS at 41-47 cents and sales $501-$516 million versus a $543.14 million estimate.

Callaway Analyst: Topgolf Worth More Than Previously Thought

"In addition to record sales and operating profit, we made great progress executing our corporate strategy of transforming Callaway into a premium golf equipment and active lifestyle company," said Chip Brewer, CEO of Callaway Golf. "The acquisition of Jack Wolfskin in early 2019 was an important part of that strategy and our TravisMathew business continues to grow at double digit rates. All the while, we remained steadfast in our focus on the golf equipment business which grew over 7%, outpacing the overall golf market and further strengthening our brand positions."

Callaway Golf's stock was trading down 7.3% to $19.10 per share in Monday's after-hours session. The stock has a 52-week high of $22.33 and a 52-week low of $14.50.

Posted-In: coronavirusEarnings News Sports After-Hours Center General Best of Benzinga

 

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