I'm a bit late, but earnings are out .34 vs est. of .33
EPS increases 21% which makes ELY trading at near its growth rate. So, it's fully valued for now, but the Tiger Woods effect should go into full speed ahead this summer.
Technically, the chart shows strong support at 30. But, within the last year, ELY has had trouble going through 36. Looks like it's getting ready for another run at it- probably around next earnings release.
Wednesday April 16 5:00 PM EDT
Callaway Golf Reports First Quarter Gains
Net Sales Increase 25% And Net Income Up 26%
CARLSBAD, Calif., April 16 /PRNewswire/ -- Callaway Golf Co today reported net sales of $169.1 million for the first quarter ended March 31, 1997, an increase of 25 percent over net sales of $135.1 million reported in the first quarter of 1996, according to Ely Callaway, Chairman and Founder, and Donald H. Dye, President and C.E.O. Net income increased 26 percent to $24.5 million in the first quarter of 1997 over the first quarter of 1996, and fully diluted earnings per share gained 21 percent to $.34 in 1997 from $.28 in the first quarter of 1996.
Net sales of $169.1 million were comprised of: $81.1 million of titanium Metal Woods, including Great Big Bertha(R) Drivers and Fairway Woods and Biggest Big Bertha(TM) Drivers; $34.5 million of Big Bertha(R) War Bird(R) Stainless Steel Metal Woods; $42.9 million of Big Bertha(R) Irons; and $10.6 million of wedges, putters, and golf accessories.
While overall operating expenses increased marginally to 29% of net sales during the first quarter as compared to the prior year, research and development expenses increased to $6.0 million (3.5% of net sales) during this same period in 1997. This increase resulted from increased staffing and operational expenses consistent with the Company's efforts to pursue other potential new business opportunities, and the continued focus on developing core products.
President and C.E.O. Donald H. Dye stated, "We are very pleased with the results of the first quarter which included the initial shipments of the Company's Biggest Big Bertha(TM) Titanium Driver. This new driver experienced excellent consumer demand and sell through and will help to continue the Company's position as the leading manufacturer of metal woods for the amateur and professional golfer. Since 1995, Callaway Golf's Big Bertha(R) Drivers in various models have been the #1 choice of professional golfers. In that year, Big Bertha(R) Drivers accounted for 46% of all drivers used on the five major tours. Callaway driver penetration increased to 57% in 1996, and so far in 1997, Big Bertha(R) Drivers have accounted for 64% of all drivers used on those five tours combined (PGA, Senior PGA,
LPGA, NIKE, and European PGA Tours)."
Additionally, the Board of Directors approved a dividend for the first quarter of 1997 of $.07 per share, payable May 20, 1997 for shareholders of record as of April 29, 1997. |
