Carter's (NYSE:CRI) Posts Earnings Results, Misses Expectations By $0.26 EPS

Key Points

• Carter's reported a Q1 earnings per share (EPS) of $0.17, falling short of the consensus estimate of $0.43, while revenue reached $585.31 million, exceeding expectations of $563.24 million.
• The company has increased its dividend to $0.25 per share, yielding 3.19%, up from $0.22 previously, with a dividend payout ratio of 22.12%.
• Carter's stock experienced a significant drop of $6.40 during trading, closing at $26.36, which contrasts sharply with its 52-week high of $71.99.

Carter's (NYSE:CRI - Get Free Report) posted its earnings results on Friday. The textile maker reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.26), Zacks reports. Carter's had a return on equity of 20.68% and a net margin of 4.79%. The business had revenue of $585.31 million for the quarter, compared to analysts' expectations of $563.24 million. During the same quarter in the previous year, the firm earned $0.76 EPS. Carter's's revenue for the quarter was up 3.7% compared to the same quarter last year.

Carter's Price Performance

NYSE:CRI traded down $0.96 during trading hours on Wednesday, hitting $24.63. The company's stock had a trading volume of 2,177,703 shares, compared to its average volume of 1,690,338. The business's 50-day moving average is $31.08 and its two-hundred day moving average is $38.77. The company has a market capitalization of $897.27 million, a PE ratio of 6.53 and a beta of 0.98. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.03 and a current ratio of 2.20. Carter's has a 52-week low of $23.50 and a 52-week high of $71.99.

Carter's Increases Dividend

The firm also recently disclosed a dividend, which was paid on Friday, June 20th. Shareholders of record on Tuesday, June 3rd were given a $0.25 dividend. This is a boost from Carter's's previous dividend of $0.22. The ex-dividend date was Monday, June 2nd. This represents a yield of 3.19%. Carter's's dividend payout ratio is presently 26.53%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. UBS Group reduced their price objective on Carter's from $32.00 to $26.00 and set a "neutral" rating for the company in a research note on Monday. Wells Fargo & Company boosted their price objective on Carter's from $25.00 to $28.00 and gave the company an "underweight" rating in a research note on Wednesday, May 14th. Finally, Barclays reduced their price objective on Carter's from $25.00 to $22.00 and set an "underweight" rating for the company in a research note on Tuesday.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Carter's stock. Royal Bank of Canada grew its position in Carter's, Inc. (NYSE:CRI - Free Report) by 50.2% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 40,649 shares of the textile maker's stock after buying an additional 13,594 shares during the quarter. Royal Bank of Canada owned 0.11% of Carter's worth $1,663,000 at the end of the most recent quarter.

Carter's Company Profile

Carter's, Inc engages in the business of brand marketing of young children's apparel. It operates through the following segments: the United States (US) Retail, US Wholesale, and International. The US Retail segment includes selling products through retail stores and ecommerce websites. The US Wholesale segment focuses on wholesale partners.