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

Key Points

• Zacks Research raised Carter’s Q3 2026 EPS estimate to $0.85 from $0.77, while maintaining a “Hold” rating. The firm projects FY2026 EPS of $3.42 and FY2027 EPS of $3.35.
• Carter’s latest quarterly results exceeded expectations, with EPS of $0.26 versus the $0.06 consensus and revenue of $615.49 million, up 5.2% year over year.
• The stock opened at $35.74, below its 52-week high of $44.44, and the company announced a quarterly dividend of $0.25 per share, equal to a 2.8% annualized yield.

Carter's, Inc. (NYSE:CRI - Free Report) - Equities research analysts at Zacks Research increased their Q3 2026 EPS estimates for Carter's in a research report issued on Friday, August 21st. Zacks Research analyst Team now expects that the textile maker will earn $0.85 per share for the quarter, up from their prior estimate of $0.77. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Carter's' current full-year earnings is $3.28 per share. Zacks Research also issued estimates for Carter's' FY2026 earnings at $3.42 EPS and FY2027 earnings at $3.35 EPS.

Carter's (NYSE:CRI - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The textile maker reported $0.26 earnings per share for the quarter, beating analysts' consensus estimates of $0.06 by $0.20. Carter's had a net margin of 6.55% and a return on equity of 12.78%. The business had revenue of $615.49 million during the quarter, compared to analyst estimates of $605.68 million. During the same quarter last year, the business posted $0.17 earnings per share. Carter's's revenue for the quarter was up 5.2% compared to the same quarter last year.

A number of other equities research analysts also recently weighed in on the company. Weiss Ratings upgraded Carter's from a "sell (d+)" rating to a "hold (c)" rating in a research report on Thursday, August 13th. Citigroup reaffirmed a "buy" rating on shares of Carter's in a research note on Tuesday, July 21st. Wall Street Zen upgraded Carter's from a "buy" rating to a "strong-buy" rating in a report on Monday, August 10th. Monness Crespi & Hardt lifted their price objective on Carter's from $45.00 to $50.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Finally, UBS Group reissued a "buy" rating on shares of Carter's in a report on Wednesday, July 8th. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $41.17.

Carter's Stock Down 0.1%

Shares of CRI opened at $35.74 on Monday. The firm has a market capitalization of $1.31 billion, a price-to-earnings ratio of 6.69, a PEG ratio of 4.03 and a beta of 0.86. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.50 and a current ratio of 2.47. The business's fifty day moving average price is $39.68 and its two-hundred day moving average price is $37.95. Carter's has a 52 week low of $25.48 and a 52 week high of $44.44.

Carter's Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Tuesday, September 1st will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Tuesday, September 1st. Carter's's payout ratio is presently 18.73%.

Institutional Trading of Carter's

A number of hedge funds have recently modified their holdings of the company. AQR Capital Management LLC boosted its position in shares of Carter's by 113.7% during the second 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 in the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Carter's in the 2nd quarter valued at $28,348,000. Rubric Capital Management LP increased its position in shares of Carter's by 121.5% in the 1st quarter. Rubric Capital Management LP now owns 1,018,853 shares of the textile maker's stock valued at $36,434,000 after buying an additional 558,853 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in Carter's by 36.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,765,205 shares of the textile maker's stock worth $63,121,000 after buying an additional 472,786 shares during the period. Finally, Quantinno Capital Management LP raised its stake in Carter's by 1,679.7% during the 2nd quarter. Quantinno Capital Management LP now owns 370,791 shares of the textile maker's stock worth $11,172,000 after buying an additional 349,957 shares during the period.

About Carter's

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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