Brokers Issue Forecasts for Carter's' Q3 Earnings (NYSE:CRI)

Carter's, Inc. (NYSE:CRI - Free Report) - Equities research analysts at Zacks Research cut their Q3 2026 earnings per share (EPS) estimates for Carter's in a research report issued to clients and investors on Wednesday, August 13th. Zacks Research analyst Team now forecasts that the textile maker will earn $0.47 per share for the quarter, down from their prior 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.

A number of other analysts have also commented on the company. Barclays dropped their price target on Carter's from $25.00 to $22.00 and set an "underweight" rating for the company in a research note on Tuesday, July 29th. Wells Fargo & Company raised their price target on Carter's from $25.00 to $28.00 and gave the stock an "underweight" rating in a research note on Wednesday, May 14th. Finally, UBS Group dropped their price target on Carter's from $32.00 to $26.00 and set a "neutral" rating for the company in a research note on Monday, July 28th. Two equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Strong Sell" and a consensus price target of $30.25.

Carter's Trading Up 5.8%

CRI stock traded up $1.4620 on Monday, reaching $26.7820. The company's stock had a trading volume of 280,945 shares, compared to its average volume of 1,534,230. The business has a fifty day simple moving average of $28.95 and a two-hundred day simple moving average of $35.61. Carter's has a 12-month low of $23.38 and a 12-month high of $71.99. The firm has a market cap of $975.72 million, a PE ratio of 7.10 and a beta of 0.99. 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 (NYSE:CRI - Get Free Report) last released its quarterly earnings data on Friday, July 25th. The textile maker reported $0.17 earnings per share for the quarter, missing analysts' consensus estimates 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 net margin of 4.79% and a return on equity of 20.68%. The business's revenue for the quarter was up 3.7% compared to the same quarter last year. During the same period last year, the company posted $0.76 EPS.

Hedge Funds Weigh In On Carter's

Several institutional investors and hedge funds have recently added to or reduced their stakes in CRI. RWWM Inc. lifted its position in Carter's by 86.1% during the second quarter. RWWM Inc. now owns 4,075,791 shares of the textile maker's stock valued at $122,804,000 after buying an additional 1,885,309 shares during the period. Millennium Management LLC raised its position in shares of 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 purchasing an additional 1,620,140 shares during the last quarter. AQR Capital Management LLC raised its position in shares of 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 worth $77,267,000 after purchasing an additional 1,364,698 shares during the last quarter. D. E. Shaw & Co. Inc. raised its position in shares of Carter's by 108.0% in the 4th quarter. D. E. Shaw & Co. Inc. now owns 1,126,468 shares of the textile maker's stock worth $61,043,000 after purchasing an additional 584,850 shares during the last quarter. Finally, First Trust Advisors LP raised its position in shares of 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 purchasing an additional 479,961 shares during the last quarter.

Carter's Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 12th. Shareholders of record on Tuesday, August 26th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 3.7%. Carter's's dividend payout ratio is currently 26.53%.

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.