Callaway Golf Co. — the Carlsbad maker of balls, clubs and golf accessories — reported a 140 percent improvement in second quarter earnings and got a surprise gift from a competitor.
Second quarter net income was $34.1 million (36 cents per diluted share) on net sales of $245.6 million. Net income in the year-ago quarter was $12.8 million (15 cents per diluted share) on net sales of $230.5 million.
Callaway reported greater sales in woods, irons, putters and balls. Sales increased in every region, including the United States, Europe and Japan and the rest of Asia.
The July 27 announcement was followed by a surprise on Aug. 3, when Bloomberg reported that competitor Nike (NYSE: NKE) planned to exit the golf equipment business. The news apparently gave Callaway (NYSE: ELY) stock a 4 percent bump on Thursday. Shares ended the day at $11.00.
Nike is a comparative giant, with revenue of $32.4 billion in the recently concluded fiscal year. The Oregon company plans to continue making golf apparel.
In the research and development space, Callaway said it teamed up with aerodynamics specialists at Boeing to launch new driver technology.
Callaway said it expected 2016 earnings per share in the range of 40 cents to 50 cents — a far cry from the 17 cents of 2015. Total sales for 2016 should end up in the range of $855 million to $880 million, the business said.