Zacks Research Weighs in on Carter’s’ Q2 Earnings (NYSE:CRI)

Carter’s, Inc. (NYSE:CRI) – Analysts at Zacks Research decreased their Q2 2026 earnings per share estimates for Carter’s in a research report issued on Wednesday, May 27th. Zacks Research analyst Team now expects that the textile maker will earn $0.02 per share for the quarter, down from their prior forecast of $0.14. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Carter’s’ current full-year earnings is $3.09 per share. Zacks Research also issued estimates for Carter’s’ Q4 2026 earnings at $1.92 EPS, Q2 2027 earnings at $0.33 EPS, Q3 2027 earnings at $0.71 EPS, Q4 2027 earnings at $1.92 EPS and Q1 2028 earnings at $0.27 EPS.

Carter’s (NYSE:CRI) last posted its earnings results on Wednesday, May 6th. The textile maker reported $0.39 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.26. Carter’s had a return on equity of 13.06% and a net margin of 3.07%.The business had revenue of $681.11 million for the quarter, compared to analysts’ expectations of $660.59 million. During the same quarter in the previous year, the firm earned $0.66 earnings per share. The business’s revenue was up 8.1% compared to the same quarter last year. Carter’s has set its Q2 2026 guidance at 0.020-0.060 EPS.

CRI has been the topic of a number of other research reports. Needham & Company LLC began coverage on Carter’s in a report on Thursday, March 26th. They set a “hold” rating on the stock. UBS Group raised their price target on Carter’s from $40.00 to $41.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Wall Street Zen raised Carter’s from a “hold” rating to a “buy” rating in a report on Saturday, April 18th. The Goldman Sachs Group upgraded shares of Carter’s from a “neutral” rating to a “buy” rating and set a $38.00 target price for the company in a research note on Thursday, April 9th. Finally, Wells Fargo & Company raised their target price on shares of Carter’s from $28.00 to $33.00 and gave the stock an “underweight” rating in a research note on Wednesday, April 29th. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $39.67.

Carter’s Stock Performance

NYSE CRI opened at $40.20 on Friday. The company has a quick ratio of 1.72, a current ratio of 2.80 and a debt-to-equity ratio of 0.61. Carter’s has a 52-week low of $23.38 and a 52-week high of $44.44. The business’s 50-day moving average price is $36.03 and its 200 day moving average price is $35.14. The firm has a market cap of $1.48 billion, a P/E ratio of 16.21 and a beta of 0.86.

Institutional Investors Weigh In On Carter’s

A number of institutional investors have recently added to or reduced their stakes in the business. RWWM Inc. boosted its holdings in Carter’s by 44.8% in the 3rd quarter. RWWM Inc. now owns 5,900,170 shares of the textile maker’s stock valued at $166,503,000 after purchasing an additional 1,824,379 shares in the last quarter. Vanguard Group Inc. boosted its holdings in Carter’s by 1.1% in the 3rd quarter. Vanguard Group Inc. now owns 4,226,804 shares of the textile maker’s stock valued at $119,280,000 after purchasing an additional 46,560 shares in the last quarter. AQR Capital Management LLC boosted its holdings in Carter’s by 113.7% in the 2nd quarter. AQR Capital Management LLC now owns 2,564,457 shares of the textile maker’s stock valued at $77,267,000 after purchasing an additional 1,364,698 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Carter’s by 36.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,765,205 shares of the textile maker’s stock valued at $63,121,000 after purchasing an additional 472,786 shares in the last quarter. Finally, Morgan Stanley boosted its holdings in Carter’s by 15.7% in the 4th quarter. Morgan Stanley now owns 1,762,036 shares of the textile maker’s stock valued at $57,143,000 after purchasing an additional 239,469 shares in the last quarter.

Carter’s Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Tuesday, May 26th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Tuesday, May 26th. Carter’s’s payout ratio is currently 40.32%.

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.