Callaway Golf ( ELY) rose 10% in after-hours trading after the golf company guided higher for the third quarter. The Carlsbad, Calif., maker of golf clubs said it expects to make as much as 2 cents a share for the quarter on sales of $236 million. Analysts surveyed by Thomson Financial were looking for a nickel-a-share loss on sales of $199 million. "We are very pleased with our preliminary third quarter results as our business continues to exceed our expectations," said CEO George Fellows. "Consumer and retail demand for our products has remained strong, resulting in record sales for the first nine months of 2007. We also continue to realize significant benefits from our November 2006 gross margin improvement initiatives and inventory reduction initiatives. For the first nine months of 2007, our estimated gross margins as a percent of sales has increased 5 percentage points compared to 2006 and our estimated inventory at the end of September decreased $28 million compared to last year, in line with our recent forecasts." Shares rose $1.48 to $16.75.