At last check Callaway's stock price rose 4.8% to $11.14 after the Carlsbad, Calif., golf-equipment company told investors that first-quarter profit and revenue were likely to come in significantly lower than expected as the coronavirus shut down golf courses around the world.
Callaway, which is set to report its first-quarter earnings next month, now expects revenue to come in between $438 million and $443 million.
That's down from $516 million the equipment maker generated during the first three months of 2019 and as much as 9.1% below the $482 million predicted by analysts surveyed by FactSet.
Callaway is also warning that earnings are now expected to come in at 27 cents to 31 cents a share.
On the lower end, that's a bit more than half what Callaway reported during first-quarter 2019, when EPS was 50 cents. And analysts surveyed by FactSet were expecting 38 cents as a consensus estimate.
However, Callaway offered a more upbeat forecast on the prospects for golf and the company's bottom line once the coronavirus crisis recedes.
Through early March, Callaway was on track to see "record net sales" for 2020, President and Chief Executive Chip Brewer said in a statement.
Brewer pointed to high usage rates at golf course in North America, half of which have remained open, as well as the return of golfers to the links in China and South Korea as the epidemic has been brought under control there.
"We expect the sport of golf to come back quickly as it is commonly viewed as a relatively safe and healthy outdoor activity that one can enjoy while still observing social distancing guidelines," Brewer said.