Understanding Carter's Upcoming Earnings Release
Carter's (NYSE: CRI) is gearing up to announce its quarterly earnings soon. With significant interest from investors, this preview outlines crucial insights to consider leading up to the release.
Expectations are set high, with analysts projecting an earnings per share (EPS) figure of approximately $1.34. Investors are eager to see if Carter's will exceed these expectations and provide optimistic guidance as well.
Recent Earnings Performance
Looking back at prior earnings reports gives us valuable context. In their last announcement, Carter's managed to outperform EPS projections by $0.27. However, this positive news wasn’t reflected in the stock price, which saw no significant change immediately after.
Reviewing the company’s performance across different quarters reveals the following details:
Earnings Summary:
Here’s a snapshot of Carter's recent earnings along with its estimated versus actual EPS:
- Quarterly EPS Estimates and Results:
- EPS Estimate Q2: $0.49 | Actual: $0.76 | Price Change: -4.0%
- EPS Estimate Q1: $0.77 | Actual: $1.04 | Price Change: -2.0%
- EPS Estimate Q4: $2.63 | Actual: $2.76 | Price Change: +2.0%
- EPS Estimate Q3: $1.54 | Actual: $1.84 | Price Change: 0.0%
Carter's Stock Overview
As of a recent trading session, Carter's shares were priced at $65.55. When looking back at the past year, the stock has experienced a modest rise, with a total increase of around 2.53%. Such stable performance is encouraging for long-term investors as they prepare for the upcoming earnings report.
Analyst Sentiments Toward CRI
Understanding the sentiments and ratings of market analysts is essential for anticipating stock movements. The consensus on Carter's remains Neutral, with analysts attributing two ratings to the company. The average price target stands at $63.00, indicating a slight downside potential of approximately 3.89%.
Comparative Analysis with Industry Peers
In the apparel sector, a comparison of Carter's performance with peers helps shed light on the market landscape. The companies analyzed include Hanesbrands, G-III Apparel Group, and Oxford Industries:
- Hanesbrands: Neutral rating, average price target: $6.17 (potential downside: 90.59%).
- G-III Apparel Group: Neutral rating, average price target: $31.60 (potential downside: 51.79%).
- Oxford Industries: Neutral rating, average price target: $88.00 (potential upside: 34.25%).
Key Metrics of Peer Performance
A detailed comparison of the companies shows various performance measures:
- Carter's: Revenue Growth: -5.96%, Gross Profit: $282.94M, Return on Equity: 3.28%.
- Hanesbrands: Revenue Growth: -3.83%, Gross Profit: $307.07M, Return on Equity: -148.24%.
- G-III Apparel Group: Revenue Growth: -2.27%, Gross Profit: $275.87M, Return on Equity: 1.60%.
- Oxford Industries: Revenue Growth: -0.10%, Gross Profit: $265.01M, Return on Equity: 6.69%.
A key takeaway from this analysis is that while Carter's shows stronger gross profits and return on equity compared to peers, it lags behind in revenue growth.
All About Carter's
Carter's Inc specializes in providing apparel for infants and children through renowned brands like Carter's and OshKosh B'gosh. Its sales strategy utilizes a multi-channel business model that encompasses retail stores, eCommerce platforms, and wholesale avenues, thereby reaching a diverse array of consumers. The company operates across three segments: U.S. Retail, U.S. Wholesale, and International, with most sales occurring domestically and a focus on increasing its international presence.
Carter's Financial Milestones
Market Capitalization Insights: Currently, Carter's market capitalization is relatively modest compared to industry competitors. Factors pertaining to growth expectations and operational capability play a role in this perception.
Declining Revenue Concerns: The last three months have presented challenges for Carter's, with a notable decline of approximately -5.96% in revenue growth. This trend is alarming compared to the overall average growth rates in the Consumer Discretionary sector.
Strong Profitability Metrics: Despite revenue concerns, Carter's boasts a robust net margin of 4.8%, demonstrating effective cost management and consistent profitability.
Financial Management Excellence: With a return on equity reaching 3.28%, Carter's shows strong efficient use of shareholder capital, which stands out positively in the industry. In addition, a return on assets of 1.17% highlights effective utilization of its assets.
Responsible Debt Management: The company's debt-to-equity ratio sits comfortably at 1.31, falling below industry averages, indicating sound financial health.
Frequently Asked Questions
1. When is Carter's expected to announce its quarterly earnings?
The earnings announcement for Carter's is anticipated to occur on a specified Friday in October.
2. What earnings per share do analysts expect from Carter's?
Analysts project an earnings per share (EPS) of $1.34 for the upcoming earnings report.
3. How has Carter's stock performed in the last year?
Over the past 52 weeks, Carter's shares have increased by approximately 2.53%.
4. How does Carter's compare to its industry peers?
Carter's ranks well in gross profit and return on equity, but its revenue growth lags behind that of some competitors.
5. What are the company’s primary brands?
Carter's primarily markets apparel through its established brands, including Carter's and OshKosh B'gosh.
