NEW YORK (AP) -- Shares of Callaway Golf Co. rose Friday after the golf equipment maker forecast first-quarter results above analyst expectations.

Late Thursday, the company said it expects first-quarter earnings between 59 cents and 61 cents per share, while analysts polled by Thomson Financial expect a profit of 58 cents per share.

Callaway also reiterated fiscal 2008 earnings guidance but said it expects sales to be on the low end of its expected range because of the weak economy.

Susquehanna Financial Group analyst John Shanley said in a note to investors that he remains cautious about the company's performance past the first quarter.

"Although we are raising our estimates for first-quarter 2008, we are also lowering our estimates for the next three quarters, given the greater uncertainties surrounding consumer discretionary spending, particularly with big-ticket items such as golf equipment," Shanley wrote.

He added that there is little chance for Callaway to make up any first-half sales shortfalls in the second half of the year, which traditionally generates a loss for the company.

He reiterated his "neutral" rating on the stock.

However, investors reacted to the strong first-quarter outlook. Shares rose $1.20, or 8.5 percent, to $15.39 during morning trading, but slipped back to $13.83, or 4.51 percent, by the end of trading on Friday. The stock has traded between $13.76 and $19.49 during the past 52 weeks.

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