Merriman Curhan Ford & Co. cut its estimates on Ashworth (ASHW ), citing the company's quarterly results.
Analyst Erin Moloney says that although clearance of excess inventory severely impacted earnings per share during the quarter, the company successfully cleared through all the inventory left over from the third quarter. The analyst cut a one penny fourth quarter earnings per share estimate to a 17 cents loss. While pleased the company was able to clean up its balance sheet, the analyst is disappointed by its impact to the income statement. Moloney thinks it will take time before the company is able to realize signficant improvement across all channels of distribution and carry that to the bottom line. Moloney says the shares remain fairly valued and upside may be limited over the next 12 months. The rating remains at neutral.