Callaway Golf Increases Full Year Financial Guidance - Quick Facts

(RTTNews) - Callaway Golf Company (ELY) increased its 2017 non-GAAP earnings per share guidance to $0.40 - $0.45 due to the projected increase in net sales, improved gross margin and decrease in estimated operating expenses. Previous estimate was $0.31 - $0.37.

The company currently estimates full year 2017 net sales of $980 - $995 million. Previous estimate was $960 - $980 million. The majority of the expected increase in net sales in the second half of 2017 is anticipated to occur in the third quarter.

On a non-GAAP basis, the company's earnings per share for the second quarter of 2017 increased to $0.34 as compared to $0.12 for the comparable period in 2016. Net sales increased 24% to $305 million.

Separately, Callaway Golf announced it has entered into a definitive agreement to acquire TravisMathew, LLC, a high-growth golf and lifestyle apparel company, for $125.5 million in an all-cash transaction, subject to a working capital adjustment.

In 2017, TravisMathew's net sales are expected to be in the range of $55-60 million, of which approximately $10-15 million will contribute to Callaway's 2017 second half financial results assuming the transaction closes in the third quarter of 2017. TravisMathew is expected to be approximately $0.04 dilutive to Callaway's 2017 earnings per share but is expected to be slightly accretive in 2018.