Zacks Research Has Bullish Estimate for Carter’s Q3 Earnings

Carter’s, Inc. (NYSE:CRI) – Investment analysts at Zacks Research increased their Q3 2026 earnings estimates for shares of Carter’s in a research report issued on Friday, August 21st. Zacks Research analyst Team now anticipates that the textile maker will post earnings of $0.85 per share for the quarter, up from their prior forecast of $0.77. Zacks Research has a “Strong-Buy” rating on the stock. The consensus estimate for Carter’s’ current full-year earnings is $3.28 per share. Zacks Research also issued estimates for Carter’s’ FY2026 earnings at $3.42 EPS and FY2027 earnings at $3.35 EPS.

Carter’s (NYSE:CRI) last announced its earnings results on Friday, July 31st. The textile maker reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.06 by $0.20. Carter’s had a return on equity of 12.78% and a net margin of 6.55%.The company had revenue of $615.49 million during the quarter, compared to the consensus estimate of $605.68 million. During the same period last year, the firm earned $0.17 earnings per share. The company’s revenue was up 5.2% on a year-over-year basis.

CRI has been the topic of several other reports. Citigroup restated a “buy” rating on shares of Carter’s in a report on Tuesday, July 21st. Wells Fargo & Company raised shares of Carter’s from an “underweight” rating to an “equal weight” rating and raised their price target for the stock from $30.00 to $42.00 in a research report on Wednesday, June 17th. Monness Crespi & Hardt lifted their price target on shares of Carter’s from $45.00 to $50.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Weiss Ratings raised shares of Carter’s from a “sell (d+)” rating to a “hold (c)” rating in a report on Thursday, August 13th. Finally, Wall Street Zen upgraded shares of Carter’s from a “buy” rating to a “strong-buy” rating in a research note on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Carter’s presently has a consensus rating of “Moderate Buy” and a consensus target price of $41.17.

Carter’s Trading Down 1.1%

Shares of CRI opened at $33.95 on Monday. The company has a market capitalization of $1.25 billion, a P/E ratio of 6.36, a P/E/G ratio of 3.87 and a beta of 0.86. Carter’s has a one year low of $26.20 and a one year high of $44.44. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.50 and a current ratio of 2.47. The stock has a 50-day moving average price of $39.39 and a 200 day moving average price of $37.90.

Carter’s Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Tuesday, September 1st. Carter’s’s dividend payout ratio (DPR) is currently 18.73%.

Institutional Investors Weigh In On Carter’s

A number of institutional investors have recently made changes to their positions in CRI. Royal Bank of Canada lifted its stake in Carter’s by 50.2% during the first quarter. Royal Bank of Canada now owns 40,649 shares of the textile maker’s stock worth $1,663,000 after purchasing an additional 13,594 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Carter’s by 5.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 120,964 shares of the textile maker’s stock valued at $4,947,000 after purchasing an additional 6,195 shares during the last quarter. Russell Investments Group Ltd. increased its stake in Carter’s by 4.7% during the second quarter. Russell Investments Group Ltd. now owns 16,482 shares of the textile maker’s stock valued at $497,000 after purchasing an additional 734 shares during the last quarter. Hsbc Holdings PLC raised its holdings in shares of Carter’s by 71.5% during the second quarter. Hsbc Holdings PLC now owns 9,390 shares of the textile maker’s stock worth $282,000 after purchasing an additional 3,915 shares during the period. Finally, Invesco Ltd. raised its holdings in shares of Carter’s by 30.4% during the second quarter. Invesco Ltd. now owns 223,731 shares of the textile maker’s stock worth $6,741,000 after purchasing an additional 52,103 shares during the period.

Carter’s News Summary

Here are the key news stories impacting Carter’s this week:

• Positive Sentiment: Carter’s has been added to the Zacks Rank #1 (Strong Buy) list and the firm’s Strong Buy income-stock list, which may attract value- and income-focused investors. New Strong Buy Stocks for August 24th Best Income Stocks to Buy for August 24th
• Positive Sentiment: Zacks Research raised its Q4 2027 EPS forecast to $2.74 from $1.92 and its Q2 2028 forecast to $1.25 from $0.19. These increases indicate stronger expected earnings in key future quarters. Carter’s earnings estimate revisions
• Positive Sentiment: Zacks says CRI is technically oversold after its recent decline, while broader analyst earnings revisions are improving. Oversold conditions can signal that heavy selling has eased and a trend reversal may be possible. Carter’s Loses 11.4% in 4 Weeks
• Neutral Sentiment: Analysts highlighted Carter’s stronger recent results, while the current full-year EPS consensus remains $3.28. This supports the investment case but does not represent a new company guidance change. Carter’s Draws Attention After Stronger Results
• Negative Sentiment: Estimate revisions were mixed: Q3 2027 EPS was cut sharply to $0.13 from $0.71, and Q1 2028 EPS was reduced to a projected loss of $0.25 from $0.27 profit. These cuts point to potential near-term earnings volatility. Zacks’ published ratings are also inconsistent, ranging from Hold to Strong Buy. Q3 Earnings Forecast for Carter’s Issued By Zacks Research

Carter’s Company Profile

Carter’s, Inc (NYSE: CRI) is a leading designer and marketer of infant and young children’s apparel in North America. Headquartered in Atlanta, Georgia, the company’s core business focuses on creating clothing and accessories for babies and children, including bodysuits, sleepwear, layette, outerwear and accessories that blend comfort, safety and style. Carter’s flagship brand is complemented by its OshKosh B’gosh line, which offers heritage-inspired designs and durable fabrics for toddlers and young kids.

The company distributes its products through a diversified platform that includes wholesale partnerships with major department stores and mass merchandisers, direct?to?consumer e-commerce sites, and an extensive network of company-operated retail stores.