Stock Monitor: Escalade Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 08, 2018 / Active-Investors.com has just released a free earnings report on Callaway Golf Co. (NYSE: ELY). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=ELY. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on February 07, 2018. The maker of golf equipment and accessories outperformed top- and bottom-line expectations, and also provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1000 Free Research Reports by joining our site below:
www.active-investors.com/registration-sg
Active-Investors.com is currently working on the research report for Escalade, Incorporated (NASDAQ: ESCA), which also belongs to the Consumer Goods sector as the Company Callaway Golf. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/'symbol=ESCA
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Callaway Golf most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=ELY
Earnings Highlights and Summary
For the fourth quarter of FY17, Callaway Golf's net sales increased 17% to $192 million compared to $164 million in Q4 2016. The increase was attributable to the continued success of the EPIC driver and fairway woods, and increased net sales of gear, accessories, and other, primarily as a result of the Company's recent acquisitions of OGIO and TravisMathew. Callaway Golf's revenue numbers topped analysts' estimates of $183.1 million.
For the full fiscal year 2017, Callaway Golf's net sales jumped 20% to $1.05 billion compared to $871 million in FY16.
During Q4 2017, Callaway Golf's gross margin increased 300 basis points (BPS) to 41.6% compared to 38.6% in Q4 2016. The 300-basis point increase was primarily due to a favorable shift in product mix toward the higher margin EPIC woods, combined with overall higher average selling prices.
For Q4 2017, Callaway Golf's operating expenses increased 25% to $100 million compared to $80 million in Q4 2016, primarily due to the addition, in FY17, of operating expenses from the consolidation of the OGIO and TravisMathew businesses, higher variable expense due to the increase in sales, and increased spend in research, marketing, and tour.
Callaway Golf's net loss was $19 million, or $0.20 loss per share, in Q4 2017 compared to earnings of $123 million, or $1.28 per share, in Q4 2016. On a non-GAAP basis, which excludes the impact of the non-recurring OGIO and TravisMathew transactions and transition-related expenses; non-cash tax adjustments in 2017; and the reversal of the valuation allowance in FY16; the Company would have reported a loss per share of $0.15 in Q4 2017 compared to a loss per share of $0.09 in Q4 2016. Callaway Golf's adjusted results beat Wall Street's estimates for a loss of $0.17 per share.
For FY17, Callaway Golf reported earnings of $41 million, or $0.42 per share, compared to $190 million, or $1.98 per share, in FY16. On a non-GAAP basis, the Company would have reported earnings per share (EPS) of $0.53 in FY17 compared to $0.24 in FY16.
Segment Results
During Q4 2017, Callaway Golf's Woods segment's net sales surged 36.9% to $45.21 million compared to $33.02 million in Q4 2016. The Company's Irons segment's net sales totaled $48.45 million, down 10.4% compared to $54.11 million in the year earlier same quarter.
For Q4 2017, Callaway Golf's Putter segment's net sales fell 7.4% to $13.43 million versus $14.52 million in Q4 2016. The Company's Golf Balls segment's net sales dropped 15.1% to $26.49 million versus $31.21 million in the prior year's comparable quarter. Callaway Golf's Gera/Accessories/Other segment's net sales soared 88.2% to $58.07 million in Q4 2017 compared to $30.85 million in Q4 2016.
Outlook
For the full fiscal year 2018, Callaway Golf is forecasting a net sales growth of 6% to 8%. The increase would be driven by a growth of 2% - 3% in the core business, with the balance coming from a full year of TravisMathew operating results, as well as a continued double-digit growth in that business.
For FY18, Callaway Golf is estimating its gross margin to be approximately 50 basis points higher than in FY17. This increase would be driven by continued pricing opportunities as well as a positive mix benefit of the TravisMathew business, which generally has higher gross margins than the Company's equipment business.
For Q1 2018, Callaway Golf is projecting net sales growth to be of 18% - 21%, driven by a launch timing in the core business, as well as the addition of the TravisMathew business.
Stock Performance Snapshot
March 07, 2018 - At Wednesday's closing bell, Callaway Golf's stock marginally advanced 0.06%, ending the trading session at $16.16.
Volume traded for the day: 686.37 thousand shares.
Stock performance in the last month - up 13.24%; previous three-month period - up 9.78%; past twelve-month period - up 50.47%; and year-to-date - up 16.01%
After yesterday's close, Callaway Golf's market cap was at $1.50 billion.
Price to Earnings (P/E) ratio was at 32.26.
The stock has a dividend yield of 0.25%.
The stock is part of the Consumer Goods sector, categorized under the Sporting Goods industry.
Active-Investors:
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active-Investors
