NEW YORK (TheStreet) -- Callaway Golf Co. (ELY - Get Report) stock is gaining 7.37% to $8.96 on heavy trading volume on Friday afternoon following the golf equipment maker's better than expected 2015 fourth quarter financial report.

After the market close on Thursday, the company reported a loss of 33 cents per share for the latest quarter, up from a loss of 54 cents per share for the same period in 2014. Analysts surveyed by Thomson Reuters were expecting a loss of 35 cents per share.

Revenue grew 14% year-over-year to $153.33 million, compared with $134.61 million for the 2014 fourth quarter. Wall Street was anticipating revenue of $148.36 million.

Additionally, Carlsbad, CA-based Callaway Golf announced its Japanese subsidiary will create a joint venture with long-time licensee TSI Groove & Sports Co., an apparel manufacturer.

The venture, called Callaway Apparel K.K., will design, manufacture, retail and distribute Callaway clothing, footwear and headwear in Japan beginning in the second half of 2016.

So far today, 2.19 million shares of Callaway Golf have exchanged hands, compared with its average daily volume of 781,986 shares.

Separately, Callaway Golf has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as revenue growth, largely solid financial position and expanding profit margins, and its weaknesses, including deteriorating net income, disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: ELY

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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