Callaway Golf rises; analysts see share gains

NEW YORK — Share of Callaway Golf rose Thursday, after the company’s second-quarter profit met expectations and analysts saw signs that its performance could improve as it gains more market share.

Shares rose 38 cents, or 6.7 percent, to $6.06 in late morning trading.

“Callaway is likely to at least maintain, if not gain, some market share next year in important high-margin product categories such as drivers and balls,” Wedbush Morgan analyst Rommel Dionisio told investors in a research report.

While all sellers of golf gear suffered amid the weak consumer spending environment, Callaway used deep promotions to pare down its inventory, said KeyBanc Capital Markets analyst Scott Hamann.

Hamann, who has a “Buy” rating on the shares, added that there was more upside potential on margin improvement. He said that broad market share gains were evident.

On Wednesday, Callaway said it earned 12 cents per share, excluding certain items, meeting an estimate of analysts surveyed by Thomson Reuters.