Research Analysts Issue Forecasts for Carter’s Q3 Earnings

Carter’s, Inc. (NYSE:CRI) – Research analysts at Zacks Research reduced their Q3 2027 earnings per share estimates for Carter’s in a report released on Friday, August 21st. Zacks Research analyst Team now anticipates that the textile maker will earn $0.13 per share for the quarter, down from their previous forecast of $0.71. Zacks Research has a “Strong-Buy” 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’ Q4 2027 earnings at $2.74 EPS, Q1 2028 earnings at ($0.25) EPS and Q2 2028 earnings at $1.25 EPS.

Other research analysts also recently issued reports about the stock. UBS Group restated a “buy” rating on shares of Carter’s in a research report on Wednesday, July 8th. Weiss Ratings raised shares of Carter’s from a “sell (d+)” rating to a “hold (c)” rating in a research report on Thursday, August 13th. Wells Fargo & Company upgraded shares of Carter’s from an “underweight” rating to an “equal weight” rating and increased their price objective for the stock from $30.00 to $42.00 in a research note on Wednesday, June 17th. Monness Crespi & Hardt lifted their target price on Carter’s from $45.00 to $50.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Finally, Citigroup reaffirmed a “buy” rating on shares of Carter’s in a report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $41.17.

Carter’s Stock Performance

Carter’s stock opened at $34.34 on Tuesday. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.47 and a quick ratio of 1.50. Carter’s has a 12 month low of $26.20 and a 12 month high of $44.44. The company has a fifty day moving average price of $39.54 and a two-hundred day moving average price of $37.93. The company has a market cap of $1.26 billion, a PE ratio of 6.43, a P/E/G ratio of 4.03 and a beta of 0.87.

Carter’s (NYSE:CRI) last issued its earnings results on Friday, July 31st. The textile maker reported $0.26 EPS for the quarter, topping the consensus estimate of $0.06 by $0.20. The company had revenue of $615.49 million during the quarter, compared to analyst estimates of $605.68 million. Carter’s had a return on equity of 12.78% and a net margin of 6.55%.The business’s revenue was up 5.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.17 EPS.

Carter’s Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Tuesday, September 1st. Carter’s’s dividend payout ratio (DPR) is 18.73%.

Institutional Trading of Carter’s

Hedge funds and other institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC lifted its position in Carter’s by 113.7% in 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 during the period. California State Teachers Retirement System lifted its holdings in shares of Carter’s by 3,916.7% in the second quarter. California State Teachers Retirement System now owns 1,858,497 shares of the textile maker’s stock valued at $76,496,000 after buying an additional 1,812,228 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of Carter’s by 36.6% in the first quarter. Dimensional Fund Advisors LP now owns 1,765,205 shares of the textile maker’s stock valued at $63,121,000 after buying an additional 472,786 shares during the period. Morgan Stanley boosted its stake in Carter’s by 15.7% during the fourth quarter. Morgan Stanley now owns 1,762,036 shares of the textile maker’s stock valued at $57,143,000 after buying an additional 239,469 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its stake in Carter’s by 5.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,597,901 shares of the textile maker’s stock valued at $51,820,000 after buying an additional 82,498 shares in the last quarter.

Carter’s News Roundup

Here are the key news stories impacting Carter’s this week:

• Positive Sentiment: Zacks Research raised its Q4 2027 EPS forecast to $2.74 from $1.92 and its Q2 2028 forecast to $1.25 from $0.19. These revisions suggest stronger expected profitability in later periods, although Zacks maintained a “Hold” rating.
• Positive Sentiment: Carter’s was added to Zacks’ Rank #1 “Strong Buy” list and its list of recommended income stocks, providing a near-term positive signal for investor sentiment. New Strong Buy Stocks for August 24th Best Income Stocks to Buy for August 24th
• Positive Sentiment: Recent coverage has highlighted Carter’s stronger-than-expected results, reinforcing the view that the company’s earnings and revenue performance remain areas of investor interest. Carter’s Draws Attention After Stronger Results
• Neutral Sentiment: Zacks’ current full-year consensus EPS estimate remains $3.28, while its “Hold” rating indicates that the analyst sees limited conviction despite the longer-term forecast increases.
• Negative Sentiment: Zacks cut its Q3 2027 EPS estimate to $0.13 from $0.71 and reduced its Q1 2028 forecast to a loss of $0.25 per share from expected earnings of $0.27. The sharp downward revisions point to potentially weaker results in the nearer forecast periods and are the clearest negative catalyst for CRI.

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.