second-quarter earnings slipped as the company sold fewer of its trademark woods, but the results still easily surpassed analyst estimates.
The company earned $34.1 million, or 52 cents a share, on revenue of $242.1 million, in the second quarter, compared with earnings of $37.1 million, or 55 cents a share, on revenue of $252.5 million a year ago. Analysts polled by Thomson First Call were predicting earnings of 38 cents a share in the latest period.
The golf club maker said sales of woods fell 20% to $77 million, while irons rose 6% to $83 million and putters rose 27% to $46.2 million. Golf ball sales totaled $15.6 million, down 24%.
The company raised its full-year earnings guidance, but appeared to talk down existing revenue estimates. Callaway expects to earn 95 cents a share on sales of $780 million, noting, "The golf-equipment marketplace, particularly in the U.S., remains depressed, and our competitors are taking many aggressive actions to gain business. It is also important that the overall economy, particularly in the U.S., continue to show some signs of improvement."
Analysts polled by Thomson First Call were predicting earnings of 92 cents a share and sales of $790.4 million.