Shares of Callaway Golf (NYSE:ELY) have jumped today, up by 12% as of 11:30 a.m. EDT, after the company reported second-quarter earnings results. The maker of golf products exceeded analysts' expectations and boosted its full-year guidance for 2018.
Revenue in the second quarter rose 30% to $396 million, which led to earnings per share nearly doubling to $0.63. Both top- and bottom-line results topped consensus estimates, which called for $370.9 million in sales and $0.47 per share in profit. The company said sales rose across all operating segments and major product categories. Sales of gear and accessories were also bolstered by Callaway's acquisition of TravisMathew last year.
"The excellent start in Q1 has continued through Q2," CEO Chip Brewer said in a statement. He continued:
Business around the globe remains strong with all major regions reporting significant sales growth and our new businesses, particularly TravisMathew, performing at or above plan. On the product side, we have strength across the entire line, especially with the Rogue line of woods and irons as well as the new Chrome Soft golf balls. We also continued to benefit from favorable market conditions. As a result, our EBITDA increased 62% during the second quarter compared to the prior year. I continue to be extremely pleased with our performance and our long term outlook.
Callaway boosted its full-year guidance for 2018, and now expects revenue to be in the range of $1.21 billion to $1.225 billion, up from a prior forecast of $1.17 billion to $1.185 billion. Gross margin should be 46.8%, down from the previous outlook of 47%, and operating expenses are expected to be $445 million. Earnings per share for 2018 should be $0.95 to $1, up from a prior range of $0.77 to $0.82.