Carter's Inc. (CRI) reported first-quarter earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.07 by over 500 percent.
The maker of children's apparel holds a Zacks Rank #1 (Strong Buy) ahead of the report, as estimate revisions were trending favorably. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting shares may outperform the market.
For the quarter ended in March 2026, the company posted the following results:
The quarterly revenue figure compares to $629.83 million from the same period a year ago, marking solid year-over-year growth. This is the fourth consecutive quarter that Carter's has surpassed revenue expectations. However, the earnings of $0.39 per share represent a decline from the $0.66 per share earned in the first quarter of the prior year.
This marks the second time in the last four quarters that the company has surpassed consensus EPS estimates. A quarter ago, Carter's delivered an 11.76 percent earnings surprise.
Looking ahead, the sustainability of the stock's price movement will depend on management's commentary during the upcoming earnings call. The current consensus EPS estimate is $0.14 on $609.47 million in revenues for the second quarter. For the full fiscal year, analysts expect earnings of $2.99 per share on revenues of $3.02 billion.
The significant earnings beat signals strong operational performance, though the year-over-year decline warrants caution. Investors will be closely watching the company's upcoming earnings call for management's outlook on future demand and cost structures.
This article is for informational purposes only and does not constitute investment advice.
