分类：
2008-05-08 10:57:16
Good Developing Trend in
Callaway trades at 12.6 times its 2008 earnings estimate, compared with the
industry average of 22.5, according to FactSet Research. Fortune Brands, which
owns the Titleist and Cobra brands, has a P/E ratio of 14.8, and Nike Inc. has a
ratio of 18.9.
In late January, the company of Callaway forecast 2008 net sales to increase
between 2% and 4% to a range of $1.15 billion and $1.17 billion. Earnings are
expected to be in the range of $1.08 to $1.18 a share.
April and May are two of the most important months of the year for Callaway,
Mr. Shanley said. With the weather warming up, people are getting excited for
golf and will be determining whether they need a new set of clubs.
"Sales aren't overly robust, but they're not anywhere near the question mark that
some are espousing," Mr. Fellows said, noting business in Europe and Japan
continue to look strong.
Regardless of Callaway's growth prospects, analysts say the nervous investor
isn't going to gain confidence in Callaway -- and other consumer discretionary
stocks -- unless it proves it can weather the storm.
"It's a show-me stock," SunTrust's Mr. Chappell said. "They're going to have to
post the results before anyone gives them credit.
"Callaway should buck the trend better than people expect."
TAG:
