Carter's (NYSE:CRI) Shares Up 13.8% After Better-Than-Expected Earnings

Key Points

• Shares rose 13.8% after Carter's reported better-than-expected Q1 results—EPS of $0.39 vs. $0.13 consensus and revenue of $681.11M (up 8.1% YoY); Q2 2026 guidance was set at $0.020–$0.060 EPS.
• Multiple analysts upgraded the stock, notably Citigroup raising its price target to $50 and upgrading to a "buy," but the MarketBeat consensus remains a "Hold" with a $38.67 target.
• Carter's paid a quarterly dividend of $0.25 (annualized $1.00, yield 2.6%) and saw institutional buying such as BNY Mellon increasing its stake by 55.5%; the company has a market cap of $1.42B and a P/E of 15.32.

Carter's, Inc. (NYSE:CRI - Get Free Report) shot up 13.8% on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $39.47 and last traded at $37.9360. 328,995 shares were traded during trading, a decline of 74% from the average session volume of 1,253,052 shares. The stock had previously closed at $33.34.

The textile maker reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.26. Carter's had a net margin of 3.17% and a return on equity of 14.45%. The firm had revenue of $681.11 million for the quarter, compared to analyst estimates of $660.59 million. During the same period in the previous year, the business earned $0.66 EPS. The company's revenue was up 8.1% compared to the same quarter last year. Carter's has set its Q2 2026 guidance at 0.020-0.060 EPS.

Carter's Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 27th. Stockholders of record on Friday, March 13th were paid a dividend of $0.25 per share. The ex-dividend date was Friday, March 13th. This represents a $1.00 annualized dividend and a dividend yield of 2.6%. Carter's's payout ratio is currently 39.68%.

Analyst Upgrades and Downgrades

A number of research firms recently commented on CRI. Zacks Research upgraded Carter's from a "hold" rating to a "strong-buy" rating in a report on Monday, January 19th. Citigroup upgraded Carter's from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $34.00 to $50.00 in a report on Wednesday, January 21st. Monness Crespi & Hardt upgraded Carter's from a "neutral" rating to a "buy" rating and set a $45.00 price target for the company in a report on Monday, March 2nd. The Goldman Sachs Group upgraded Carter's from a "neutral" rating to a "buy" rating and set a $38.00 price target for the company in a report on Thursday, April 9th. Finally, UBS Group lifted their price target on Carter's from $33.00 to $40.00 and gave the stock a "neutral" rating in a report on Thursday, February 19th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $38.67.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Bank of New York Mellon Corp raised its holdings in Carter's by 55.5% in the 1st quarter. Bank of New York Mellon Corp now owns 638,750 shares of the textile maker's stock valued at $22,842,000 after acquiring an additional 227,935 shares during the period. Calamos Wealth Management LLC bought a new position in Carter's in the 1st quarter valued at about $298,000. Calamos Advisors LLC bought a new position in Carter's in the 1st quarter valued at about $298,000. Fifth Third Bancorp raised its holdings in Carter's by 3,000.0% in the 1st quarter. Fifth Third Bancorp now owns 8,153 shares of the textile maker's stock valued at $292,000 after acquiring an additional 7,890 shares during the period. Finally, Integrated Advisors Network LLC bought a new position in Carter's in the 1st quarter valued at about $216,000.

Carter's Stock Performance

The stock has a market capitalization of $1.42 billion, a P/E ratio of 15.32, a PEG ratio of 4.93 and a beta of 0.86. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.44 and a current ratio of 2.51. The company's fifty day simple moving average is $36.14 and its two-hundred day simple moving average is $34.55.

Carter's Company Profile

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.

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