Children’s apparel manufacturer Carter’s (NYSE: CRI) will be reporting results this Friday morning. Here’s what to expect.
Carter's missed analysts’ revenue expectations last quarter, reporting revenues of $757.8 million, flat year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ revenue 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 6.8% year on year, improving from its flat revenue 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 to 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 - apparel and accessories segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Tapestry delivered year-on-year revenue growth of 14%, beating analysts’ expectations by 7.7%, and Under Armour reported a revenue decline of 5.2%, topping estimates by 1.2%. Tapestry traded up 17.1% following the results while Under Armour was also up 25.2%.
Read our full analysis of Tapestry’s results here and Under Armour’s results here.
Investors in the consumer discretionary - apparel and accessories segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. Carter's is up 20.3% during the same time and is heading into earnings with an average analyst price target of $34.80 (compared to the current share price of $41.17).
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