Carter’s Earnings: Here’s Why Investors are Selling Shares Now

Carter’s, Inc. (NYSE:CRI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.89%.

Carter’s, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 24.32% to $0.46 in the quarter versus EPS of $0.37 in the year-earlier quarter.

Revenue: Rose 9.69% to $517.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Carter’s, Inc. reported adjusted EPS income of $0.46 per share. By that measure, the company beat the mean analyst estimate of $0.43. It missed the average revenue estimate of $520.31 million.

Quoting Management: “Our second quarter results reflect strong sales growth driven by our Carter’s brand retail stores, and our eCommerce and International operations,” said Michael D. Casey, Chairman and Chief Executive Officer. “We’ve made good progress with our growth initiatives in the first half of this year, which include consolidating our operations in Atlanta, improving our supply chain capabilities, integrating our operations in Japan, and strengthening our information systems. We believe these initiatives will help enable the long term growth we envision for our business. We continue to expect good growth in sales and earnings this year.”

Key Stats (on next page)…

Revenue decreased 12.37% from $591.01 million in the previous quarter. EPS decreased 41.77% from $0.79 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.12 to a profit $1.11. For the current year, the average estimate is a profit of $3.34, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)