Children’s apparel manufacturer Carter’s (NYSE: CRI) will be reporting earnings this Friday before market open. Here’s what investors should know.
Carter's beat analysts’ revenue expectations last quarter, reporting revenues of $681.1 million, up 8.1% year on year. It was a stunning quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Carter's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Carter’s revenue to grow 3.5% year on year, in line with the 3.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Carter's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Carter’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Levi's delivered year-on-year revenue growth of 8%, beating analysts’ expectations by 2.9%, and VF Corp reported revenues up 1.3%, topping estimates by 2%. Levi's traded down 2.2% following the results.
Read our full analysis of Levi’s results here and VF Corp’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Carter's is down 6% during the same time and is heading into earnings with an average analyst price target of $42.67 (compared to the current share price of $38.71).
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