CARLSBAD, Calif. (AP) -- Shares of golf equipment maker Callaway Golf Co. jumped in trading Friday on hopes of a recovery after the company reported cost-cuts and promotions to boost its weak performance.

The Carlsbad, Calif.-based company reported after the market closed Thursday that its first-quarter profit dropped 83 percent, but its results matched Street expectations, as customer demand fell sharply during the recession. Its quarterly results also were inline with its previous forecast of earnings of 10 cents to 12 cents per share, with a 26-percent drop in revenue.

In April, Callaway Golf warned its first-quarter profit would come in well below the 61 cents per share it reported in the year-ago quarter, and would fall short of Wall Street's target of 43 cents per share. Following the announcement, analysts significantly lowered their profit and revenue targets.

Retailers have sharply scaled back orders for its product as fewer shoppers make discretionary purchases like golf clubs.

However, the company said it is cutting costs and has eliminated 10 percent of its worldwide positions to mitigate the impact of the recession and the stronger dollar, which also hurt its results.

And earlier this month it launched a special deal for shoppers, those who buy one of number of its high-priced drivers can receive a fairway club for a $1, which analysts think may stimulate sales.

Stifel Nicolaus & Company analyst Thomas Shaw said while Callaway's earnings outcomes have been erratic, he believes the worst may be behind the company. He said improved consumer buying behavior has been evident since March and the promotion has been well-received.

"Offering value in golf purchases appears to be the right approach this year," Shaw wrote in a research note Friday.

He noted it is still early in the golf season though and there is time for more aggressive action by competitors that could hinder its efforts.

Shares of Callaway rose 92 cents, or 11.8 percent, to $8.44 on Friday.

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