Earnings Preview: Carter's

Carter's CRI is preparing to release its quarterly earnings on Friday, 2024-10-25. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Carter's to report an earnings per share (EPS) of $1.34.

The market awaits Carter's's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.27, leading to a 0.0% drop in the share price the following trading session.

Here's a look at Carter's's past performance and the resulting price change:

Tracking Carter's's Stock Performance

Shares of Carter's were trading at $65.55 as of October 23. Over the last 52-week period, shares are up 2.53%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Take on Carter's

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Carter's.

Analysts have provided Carter's with 2 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $63.0, suggesting a potential 3.89% downside.

Analyzing Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Hanesbrands, G-III Apparel Group and Oxford Industries, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• For Hanesbrands, analysts project an Neutral trajectory, with an average 1-year price target of $6.17, indicating a potential 90.59% downside.
• G-III Apparel Group received a Neutral consensus from analysts, with an average 1-year price target of $31.6, implying a potential 51.79% downside.
• The consensus outlook from analysts is an Neutral trajectory for Oxford Industries, with an average 1-year price target of $88.0, indicating a potential 34.25% upside.

Summary of Peers Analysis

In the peer analysis summary, key metrics for Hanesbrands, G-III Apparel Group and Oxford Industries are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Carter's ranks at the top for Gross Profit and Return on Equity among its peers. However, it ranks at the bottom for Revenue Growth.

About Carter's

Carter's Inc makes apparel for babies and children under brand names including Carter's and OshKosh B'gosh. It sells its products through a multi-channel business model, which includes retail stores, eCommerce, and wholesale sales channels, as well as retail omnichannel capabilities in the United States and Canada, which enables it to reach a broad range of consumers around the world. The company operates in three segments; U.S. Retail, U.S. Wholesale, and International. The majority of Carter's sales are in the U.S. and through Carter's brand. The company predominantly sources products through contract manufacturers in Asia. It has multiple distribution centers in the U.S., in addition to distribution centers in Canada and Asia that serve international customers.

Financial Milestones: Carter's's Journey

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Carter's faced challenges, resulting in a decline of approximately -5.96% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 4.8%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Carter's's ROE excels beyond industry benchmarks, reaching 3.28%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.17%, the company showcases effective utilization of assets.

Debt Management: Carter's's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.31.

To track all earnings releases for Carter's visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.