Zacks Research Weighs in on Carter's' Q3 Earnings (NYSE:CRI)

Carter's, Inc. (NYSE:CRI - Free Report) - Zacks Research cut their Q3 2026 EPS estimates for shares of Carter's in a research report issued on Wednesday, August 13th. Zacks Research analyst Team now forecasts that the textile maker will post earnings of $0.47 per share for the quarter, down from their previous estimate of $0.86. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for Carter's' current full-year earnings is $5.15 per share. Zacks Research also issued estimates for Carter's' Q4 2026 earnings at $1.26 EPS, FY2026 earnings at $2.62 EPS and Q2 2027 earnings at $0.46 EPS.

Carter's (NYSE:CRI - Get Free Report) last issued its quarterly earnings data on Friday, July 25th. The textile maker reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.26). The company had revenue of $585.31 million for the quarter, compared to analysts' expectations of $563.24 million. Carter's had a return on equity of 20.68% and a net margin of 4.79%.The firm's quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.76 EPS.

Several other analysts also recently weighed in on the stock. UBS Group reduced their price objective on shares of Carter's from $32.00 to $26.00 and set a "neutral" rating for the company in a research report on Monday, July 28th. Wells Fargo & Company boosted their price objective on shares of Carter's from $25.00 to $28.00 and gave the stock an "underweight" rating in a research report on Wednesday, May 14th. Finally, Barclays reduced their price objective on shares of Carter's from $25.00 to $22.00 and set an "underweight" rating for the company in a research report on Tuesday, July 29th. Two research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Strong Sell" and a consensus price target of $30.25.

Carter's Stock Down 1.1%

Shares of NYSE:CRI traded down $0.2850 during trading on Monday, hitting $25.1550. 647,425 shares of the company were exchanged, compared to its average volume of 1,539,632. The stock has a market capitalization of $916.40 million, a P/E ratio of 6.69 and a beta of 0.99. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.20 and a quick ratio of 1.03. Carter's has a 12-month low of $23.38 and a 12-month high of $71.99. The firm's 50 day moving average price is $29.09 and its 200-day moving average price is $35.80.

Carter's Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 12th. Investors of record on Tuesday, August 26th will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 4.0%. Carter's's dividend payout ratio (DPR) is 26.53%.

Institutional Trading of Carter's

Several institutional investors and hedge funds have recently bought and sold shares of the business. RWWM Inc. raised its position in Carter's by 86.1% in the 2nd quarter. RWWM Inc. now owns 4,075,791 shares of the textile maker's stock valued at $122,804,000 after purchasing an additional 1,885,309 shares during the last quarter. AQR Capital Management LLC increased its stake in Carter's by 113.7% in the 2nd quarter. AQR Capital Management LLC now owns 2,564,457 shares of the textile maker's stock valued at $77,267,000 after buying an additional 1,364,698 shares during the period. First Trust Advisors LP increased its stake 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 valued at $104,042,000 after buying an additional 479,961 shares during the period. Millennium Management LLC increased its stake 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 valued at $66,728,000 after buying an additional 1,620,140 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its stake in Carter's by 6.5% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,327,040 shares of the textile maker's stock valued at $54,276,000 after buying an additional 81,097 shares during the period.

About Carter's

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.