Callaway Golf sees weak Q3, shares fall

(Reuters) - Callaway Golf Co (ELY.N) forecast a weak third-quarter, weighed down by charges and a stronger U.S. dollar, sending its shares down 4 percent in after market trade.

The golf equipment maker, which in July cut its outlook for the back half of the year, sees a loss of 25 cents a share on net sales of $191 million.

The company's third-quarter expectations are below the average Wall Street targets of a loss of 18 cents a share, on revenue of $194.8 million, according to Thomson Reuters I/B/E/S.

The outlook was hurt by charges of 4 cents a share related to the company's preferred stock and 1 cent a share associated with its gross margin improvement initiatives, Callaway Golf said in a statement.

Foreign currency exchange rates fluctuations adversely impacted net sales by about $3 million, the company said.

Callaway Golf expects operating expenses to fall 9 percent to $85 million.

Shares of the Carlsbad, California-based company fell 4 percent to $8.40 after the bell. They closed at $8.75 Thursday on the New York Stock Exchange.

(Reporting by Viraj Nair in Bangalore;)