Callaway Golf Co (NYSE:ELY) Turns The Corner In 4Q
$618 million market capped sports equipment manufacturer Callaway Golf Co (NYSE:ELY) announced its 4 quarter and full year operations results in the previous week. Full year sales for 2013 were up 14 percent on a constant currency basis and by less impressive 1 percent when considered on a GAAP basis. Similarly, there was a huge increase in the non GAAP operating income for the full year. It went up to $74 million in the year as compared to $69 million in 2012. The non GAAP loss per share for the year was 2 cents as compared to 77 cents in 2012.
In a press note released post the conference call, Callaway Golf Co (NYSE:ELY) highlighted some of the significant contributing factors which held the firm back from better performance by stating that, “these financial results were achieved despite a late start to the golf season in the Americas and Europe due to weather, adverse changes in foreign currency rates, and a significantly reduced base business resulting from the 2012 sale of the Top-Flite and Ben Hogan Brands and the transition to a licensing arrangement for apparel and footwear in North America.” The note goes on to state that the 2012 results which included the revenue from now sold off businesses has impacted the 2013 results by a huge $57 million for the full year.
2014 Outlook Strong
Thanks to the significantly better financial performance in the past quarter and all through the year 2013, coupled with the huge enthusiasm that Callaway Golf Co (NYSE:ELY) product line received on its release has convinced the firm to increase its annual guidance. The new guidance announced estimated that the company will return to full profitability in the fiscal 2014 even on GAAP measure. Since the result announcement, the stock has lost 8.5 percent of its market value.