Callaway Golf rises after 1st-quarter profit climbs

However, the company warned that its full-year earnings and sales will likely fall toward the low end of its previously issued guidance range.

Late Thursday, Callaway said net income for the period ended March 31 increased to $39.7 million, or 61 cents per share, from $32.8 million, or 48 cents per share, in the year-ago period.

Sales grew 10 percent to $366.5 million from $334.6 million.

Analysts surveyed by Thomson Financial predicted earnings of 60 cents per share on revenue of $361.7 million.

Carlsbad, Calif.-based Callaway said its full-year results will likely come in at the low end of its previous guidance for 2008 revenue between $1.15 billion and $1.17 billion and earnings per share between $1.08 and $1.18.

Analysts expect 2008 profit of $1.12 per share on sales of $1.16 billion.

Rommel Dionisio of Wedbush Morgan Securities was impressed with Callaway's 21 percent international growth during the quarter. He noted the segment makes up 47 percent of total sales.

"Sales in Europe and Japan were both above plan, driven by solid sales of new fairway wood models and putters," the analyst wrote in a client note.

Dionisio reaffirmed a "Buy" rating and $18 price target.