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Carter's (CRI) Queued for Q2 Earnings: Everything Worth Noting

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Carter's, Inc. (CRI - Free Report) is likely to register top and bottom-line growth when it reports second-quarter 2021 numbers on Jul 30, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $705.6 million, which indicates growth of 37% from the prior-year reported figure.

The Zacks Consensus Estimate for second-quarter earnings currently stands at 72 cents, which suggests a sharp improvement from 54 cents a share reported in the year-ago period. The consensus mark has increased by a penny in the past 30 days.

This branded marketer in North America of apparel exclusively for babies and young children has a trailing four-quarter earnings surprise of 219.3%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a significant margin.

Key Factors to Note

Return to active social lifestyle, events and occasions, courtesy of mass inoculation drive, have been boosting demand for apparel. We note that brand strength, multi-channel model, wholesale relationships with retailers and strong value proposition are likely to have contributed to Carter's second-quarter performance.

The company’s top line is likely to have benefited from acceleration of omni-channel solutions, investment in retail and supply chain capabilities, and focus on higher-margin stores. Sturdy international business has been also acting as tailwind. Effective promotions, efficient inventory management, improved price realization, and productivity might have aided margins. However, any increase in transportation costs as well as product-cost inflation remain concerns.

On its last earnings call, management guided net sales increase of approximately 35% and adjusted earnings growth of about 25% for the second quarter. The company had projected adjusted operating income increase of roughly 35% for the quarter under review.

 

Carters, Inc. Price, Consensus and EPS Surprise

Carters, Inc. Price, Consensus and EPS Surprise

Carters, Inc. price-consensus-eps-surprise-chart | Carters, Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Carter's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Carter's has a Zacks Rank #2 and an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Foot Locker (FL - Free Report) has an Earnings ESP of +7.06% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Under Armour (UAA - Free Report) has an Earnings ESP of +47.69% and a Zacks Rank #3.

Capri Holdings (CPRI - Free Report) has an Earnings ESP of +3.87% and a Zacks Rank #3.

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