Carter's Inc.

Carter's Inc. (CRI - Snapshot Report) just blew analyst estimates out of the water with its recent quarterly report. Sales are up and the company continues to expand its footprint across America.

Company Description

Carter's markets baby apparel and young children's apparel in the United States. Carter's products are offered in department stores and retail stores. The company sells products under the Tykes brand in Target stores and under its Child of Mine brand in Wal-Mart stores.

Doubles the Consensus

On Apr 28 the baby apparel maker releases fantastic first-quarter results that included a net sales increase of 8.1%, to $357 million. Carter's saw solid growth in both its retail and wholesale segments.

The increase in sales yielded net income of $16.4 million, a 42% increase. After adjustments for one-time expenses earnings per shares were $0.38, topping Wall Street expectations by 22 cents. This was the company's third surprise in the past 4 quarters.

Carter's opened 7 new locations during the quarter, bringing the total for Carter's stores to 260. The company has an additional 185 OshKosh stores.

Capitalizing on Value Shopping

In the press release the CEO, Michael D. Casey, said, "The trends in our business continue to be favorable, despite a very difficult retail market." "In this economy, consumers are more cautious with their spending, and we believe that the compelling value and nature of our product offerings, combined with the investments we have made in product benefits, brand presentation, and retail store operations, give us a competitive advantage."

Analysts React

Immediately following the report analysts began raising full-year guidance for the next two years. Current estimates are averaging $1.54 for 2009, up 15 cents since the announcement. The consensus for next year is $1.69, up 18 cents.

If met, these projections represent year-over-year growth of 11% and 10%, respectively.

The Chart

Shares of CRI have been bouncing off of the $20 level and it looks like a MACD cross over could be just days away. Take a look at the chart below.