Callaway Golf

(ELY) - Get Report

dropped 7% Wednesday morning after warning that it will miss first-quarter estimates.

The Carlsbad, Calif., company said that it expects first-quarter earnings of 31 cents a share to 33 cents a share on revenue of about $300 million. Excluding after-tax charge of 2 cents a share for the expensing of stock options and 1 cent a share associated with the consolidation of the Top-Flite and Callaway Golf operations, the company expects earnings of 34 cents a share to 36 cents a share. Analysts surveyed by Thomson First Call were expecting earnings of 48 cents a share on revenue of $330 million.

The company expects to release its first-quarter financial results on April 26.

"In terms of profitability, our pro forma earnings for the first quarter are estimated to be 13% - 20% higher than pro forma earnings last year," the company said. ''We are particularly pleased with these results given the later timing of our 2006 new product introductions compared to last year, which along with previously announced additional new product introductions should positively impact second quarter growth."

Early Wednesday, Callaway slid $1.22 to $15.68.

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