Zacks Research Has Pessimistic View of Carter’s Q3 Earnings

Carter’s, Inc. (NYSE:CRI) – Investment analysts at Zacks Research dropped their Q3 2027 earnings estimates for Carter’s in a report released on Friday, August 21st. Zacks Research analyst Team now forecasts that the textile maker will post earnings of $0.13 per share for the quarter, down from their prior forecast of $0.71. Zacks Research currently has a “Strong-Buy” rating on the stock. The consensus estimate for Carter’s’ current full-year earnings is $3.28 per share. Zacks Research also issued estimates for Carter’s’ Q4 2027 earnings at $2.74 EPS, Q1 2028 earnings at ($0.25) EPS and Q2 2028 earnings at $1.25 EPS.

A number of other analysts have also recently weighed in on the stock. Weiss Ratings raised shares of Carter’s from a “sell (d+)” rating to a “hold (c)” rating in a research report on Thursday, August 13th. Citigroup reissued a “buy” rating on shares of Carter’s in a research report on Tuesday, July 21st. Monness Crespi & Hardt boosted their price objective on Carter’s from $45.00 to $50.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Wall Street Zen raised Carter’s from a “buy” rating to a “strong-buy” rating in a research report on Monday, August 10th. Finally, Wells Fargo & Company upgraded Carter’s from an “underweight” rating to an “equal weight” rating and increased their target price for the company from $30.00 to $42.00 in a research note on Wednesday, June 17th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Carter’s presently has an average rating of “Moderate Buy” and an average target price of $41.17.

Carter’s Price Performance

Carter’s stock opened at $34.34 on Tuesday. The firm has a fifty day moving average of $39.54 and a 200-day moving average of $37.93. Carter’s has a 52-week low of $26.20 and a 52-week high of $44.44. The company has a quick ratio of 1.50, a current ratio of 2.47 and a debt-to-equity ratio of 0.55. The firm has a market capitalization of $1.26 billion, a P/E ratio of 6.43, a PEG ratio of 4.03 and a beta of 0.87.

Carter’s (NYSE:CRI) last issued its quarterly earnings results on Friday, July 31st. The textile maker reported $0.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.06 by $0.20. The firm had revenue of $615.49 million for the quarter, compared to analyst estimates of $605.68 million. Carter’s had a return on equity of 12.78% and a net margin of 6.55%.The firm’s quarterly revenue was up 5.2% on a year-over-year basis. During the same period last year, the company earned $0.17 EPS.

Institutional Trading of Carter’s

Large investors have recently modified their holdings of the business. California State Teachers Retirement System lifted its stake in shares of Carter’s by 3,916.7% in the second quarter. California State Teachers Retirement System now owns 1,858,497 shares of the textile maker’s stock worth $76,496,000 after acquiring an additional 1,812,228 shares in the last quarter. Nykredit A S purchased a new position in Carter’s in the second quarter valued at about $72,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Carter’s by 11.2% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 88,531 shares of the textile maker’s stock valued at $3,644,000 after purchasing an additional 8,896 shares in the last quarter. Wellington Management Group LLP grew its stake in Carter’s by 11.9% during the 2nd quarter. Wellington Management Group LLP now owns 645,863 shares of the textile maker’s stock valued at $26,584,000 after purchasing an additional 68,464 shares in the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new stake in Carter’s during the 2nd quarter worth approximately $139,000.

Carter’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Tuesday, September 1st. Carter’s’s dividend payout ratio is presently 18.73%.

Carter’s News Summary

Here are the key news stories impacting Carter’s this week:

• Positive Sentiment: Zacks Research raised its Q4 2027 EPS forecast to $2.74 from $1.92 and its Q2 2028 forecast to $1.25 from $0.19. These revisions suggest stronger expected profitability in later periods, although Zacks maintained a “Hold” rating.
• Positive Sentiment: Carter’s was added to Zacks’ Rank #1 “Strong Buy” list and its list of recommended income stocks, providing a near-term positive signal for investor sentiment. New Strong Buy Stocks for August 24th Best Income Stocks to Buy for August 24th
• Positive Sentiment: Recent coverage has highlighted Carter’s stronger-than-expected results, reinforcing the view that the company’s earnings and revenue performance remain areas of investor interest. Carter’s Draws Attention After Stronger Results
• Neutral Sentiment: Zacks’ current full-year consensus EPS estimate remains $3.28, while its “Hold” rating indicates that the analyst sees limited conviction despite the longer-term forecast increases.
• Negative Sentiment: Zacks cut its Q3 2027 EPS estimate to $0.13 from $0.71 and reduced its Q1 2028 forecast to a loss of $0.25 per share from expected earnings of $0.27. The sharp downward revisions point to potentially weaker results in the nearer forecast periods and are the clearest negative catalyst for CRI.

About Carter’s

Carter’s, Inc (NYSE: CRI) is a leading designer and marketer of infant and young children’s apparel in North America. Headquartered in Atlanta, Georgia, the company’s core business focuses on creating clothing and accessories for babies and children, including bodysuits, sleepwear, layette, outerwear and accessories that blend comfort, safety and style. Carter’s flagship brand is complemented by its OshKosh B’gosh line, which offers heritage-inspired designs and durable fabrics for toddlers and young kids.

The company distributes its products through a diversified platform that includes wholesale partnerships with major department stores and mass merchandisers, direct‐to‐consumer e-commerce sites, and an extensive network of company-operated retail stores.