Children’s apparel manufacturer Carter’s (NYSE:CRI) will be announcing earnings results tomorrow before the bell. Here’s what investors should know.
Carter's met analysts’ revenue expectations last quarter, reporting revenues of $758.5 million, down 4.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ same-store sales estimates but EPS guidance for next quarter missing analysts’ expectations significantly.
Is Carter's a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Carter’s revenue to decline 2.7% year on year to $834.6 million, improving from the 5.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.92 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Carter's has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Carter’s peers in the apparel and accessories segment, some have already reported their Q4 results, giving us a hint as to what we can expect. VF Corp delivered year-on-year revenue growth of 1.9%, beating analysts’ expectations by 1.2%, and Under Armour reported a revenue decline of 5.7%, topping estimates by 4.5%. VF Corp traded up 1.4% following the results while Under Armour was down 11.7%.
Read our full analysis of VF Corp’s results here and Under Armour’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the apparel and accessories stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.4% on average over the last month. Carter's is down 2.8% during the same time and is heading into earnings with an average analyst price target of $55.50 (compared to the current share price of $53.06).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
