Carter's (NYSE:CRI) Hits New 12-Month Low on Disappointing Earnings

Key Points

• Carter's, Inc. shares hit a new 52-week low of $24.09 after the company reported disappointing earnings, with earnings per share of $0.17, missing analysts' expectations by $0.26.
• The firm declared a dividend increase to $0.25 per share, with a current yield of 3.19% and a payout ratio of 22.12%.
• Analysts have adjusted their price targets for Carter's, with Barclays setting an "underweight" rating and a target price of $25, while UBS lowered their target from $37 to $32.
• The company's stock has faced multiple sell and hold ratings, with an average target price of $36.80 and an overall rating of "Reduce" from analysts.

Carter's, Inc. (NYSE:CRI - Get Free Report)'s share price hit a new 52-week low during trading on Friday following a dissappointing earnings announcement. The stock traded as low as $27.99 and last traded at $24.09, with a volume of 68169 shares. The stock had previously closed at $32.75.

The textile maker reported $0.17 EPS for the quarter, missing analysts' consensus estimates of $0.43 by ($0.26). 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 during the quarter, compared to analysts' expectations of $563.24 million. During the same period in the previous year, the business earned $0.76 EPS. The business's revenue was up 3.7% compared to the same quarter last year.

Carter's Increases Dividend

The company also recently disclosed a dividend, which was paid on Friday, June 20th. Shareholders of record on Tuesday, June 3rd were given a dividend of $0.25 per share. The ex-dividend date was Monday, June 2nd. This represents a yield of 3.19%. This is a positive change from Carter's's previous dividend of $0.22. Carter's's dividend payout ratio (DPR) is currently 26.53%.

Wall Street Analyst Weigh In

Several equities analysts have commented on CRI shares. UBS Group lowered their price objective on Carter's from $32.00 to $26.00 and set a "neutral" rating for the company in a research report on Monday. Wells Fargo & Company raised their price target on Carter's from $25.00 to $28.00 and gave the company an "underweight" rating in a report on Wednesday, May 14th. Finally, Barclays reduced their price target on Carter's from $25.00 to $22.00 and set an "underweight" rating for the company in a report on Tuesday. Three equities research analysts have rated the stock with a sell rating and two have given a hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $35.00.

Institutional Investors Weigh In On Carter's

Several large investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in Carter's by 10.4% in the 4th quarter. Vanguard Group Inc. now owns 3,895,549 shares of the textile maker's stock worth $211,100,000 after buying an additional 366,293 shares in the last quarter. RWWM Inc. increased its holdings in Carter's by 145.3% in the 1st quarter. RWWM Inc. now owns 2,190,482 shares of the textile maker's stock worth $89,591,000 after buying an additional 1,297,607 shares in the last quarter. First Trust Advisors LP increased its holdings in Carter's by 33.3% in the 4th quarter. First Trust Advisors LP now owns 1,919,953 shares of the textile maker's stock worth $104,042,000 after buying an additional 479,961 shares in the last quarter. AQR Capital Management LLC increased its holdings in Carter's by 124.4% in the 4th quarter. AQR Capital Management LLC now owns 1,739,522 shares of the textile maker's stock worth $93,134,000 after buying an additional 964,494 shares in the last quarter. Finally, Millennium Management LLC increased its holdings in Carter's by 14,270.6% in the 1st quarter. Millennium Management LLC now owns 1,631,493 shares of the textile maker's stock worth $66,728,000 after buying an additional 1,620,140 shares in the last quarter.

Carter's Price Performance

The firm has a market capitalization of $932.54 million, a PE ratio of 6.79 and a beta of 0.98. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.20 and a quick ratio of 1.03. The firm has a 50-day simple moving average of $31.45 and a 200-day simple moving average of $38.96.

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.