Callaway Golf (ELY) Stock Gains on Q3 Results, Guidance

NEW YORK (TheStreet) -- Shares of Callaway Golf  (ELY) were surging 12.46% to $11.10 on heavy trading volume early Friday afternoon after reporting better-than-anticipated results for the 2016 third quarter and lifting its outlook for the year. 

After yesterday's market close, the Carlsbad, CA-based golf retailer reported a loss of 6 cents per share, narrower than estimates for a loss of 12 cents per share.

Revenue grew by $12 million year-over-year to $188 million and beat analysts' projections of $177.4 million.

Callaway Golf raised its full-year earnings outlook to between 50 cents and 54 cents per share from between 40 cents and 50 cents per share. The company narrowed its full-year sales forecast to between $870 million and $880 million from between $855 million and $880 million.

The FactSet consensus is for earnings of 51 cents per share on revenue of $877 million for the year. 

About 2.81 million shares of Callaway Golf have been traded so far today, well above the company's average trading volume of roughly 912,581 shares a day.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

Callaway's strengths include its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations.

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 article's author.

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