Yahoo Finance Here's How Carter's (CRI) is Placed Ahead of Q1 Earnings
Carter's, Inc. CRI is scheduled to release first-quarter 2024 results on Apr 26, before the opening bell. The branded marketer of apparel, exclusively for babies and children in North America, is likely to witness a decline in the top and bottom lines when it reports first-quarter results.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $633.1 million, indicating a fall of 9% from the figure reported in the year-ago quarter. The consensus estimate for quarterly earnings, which has remained unchanged at 73 cents per share in the past 30 days, suggests a decrease of 25.5% from the year-ago quarter’s reported figure.
The company has a trailing four-quarter earnings surprise of 36.7%, on average. In the last reported quarter, CRI’s bottom line beat the Zacks Consensus Estimate by 9.5%.
Factors to Note
Carter’s has been reeling under inflationary pressures. Inflation, higher interest rates and the suspension of pandemic-related stimulus payments to child-care centers have been weighing on the demand for the company’s brands. In addition, CRI has been witnessing higher performance-based compensation provisions.
Management had projected first-quarter 2024 net sales of $620-$645 million, indicating a decline from the $696 million recorded in the year-ago quarter. It had envisioned an adjusted earnings per share of 60-70 cents, suggesting a decline from 98 cents reported in the year-ago quarter. Adjusted operating income is likely to be $35-$40 million for the first quarter, implying a drop from the $58 million recorded in the year-ago quarter.
The first-quarter guidance indicates a mid-single-digit to high-single-digit decrease in U.S. Retail sales, mid-teens decline in U.S. Wholesale sales and a low-single-digit to mid-single-digit drop in International sales. The company expects higher selling, general and administrative expenses on store openings and increased performance-based compensation provisions. Our model suggests a year-over-year decline of 5.7% and 14%, respectively, in its U.S. Retail and U.S. Wholesale divisions for the quarter under review. We expect a drop of 3.5% in International sales in the first quarter.
On the flip side, Carter’s has been seeing higher-than-planned demand in its U.S. wholesale business for a while. The company has been implementing several measures, including improved pricing and optimized inventory management, to counteract the impacts of decreased consumer demand. It has been strengthening e-commerce capabilities through investments to speed up deliveries. Some other notable efforts include expanded omnichannel facilities, including curbside pickup, same-day pickup, buy online and pickup at store, and ship from store.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Carter's this season. 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 before they’re reported with our Earnings ESP Filter.
Carter's, Inc. Price and EPS Surprise
Carter's, Inc. price-eps-surprise | Carter's, Inc. Quote
Carter's currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks Poised to Beat Earnings Estimates
Here are some companies, which according to our model, have the right combination of elements to post an earnings beat:
Central Garden & Pet CENT currently has an Earnings ESP of +4.32% and a Zacks Rank of 2. CENT is likely to register bottom-line growth when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $894.5 million, suggesting a 1.6% drop from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CENT’s fiscal second-quarter earnings is pegged at 83 cents a share, up 15.3% from the year-ago quarter. The consensus mark has risen a couple of cents in the past 30 days.
lululemon athletica LULU currently has an Earnings ESP of +0.29% and a Zacks Rank of 3. LULU is likely to have registered top and bottom-line growth in its first-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.2 billion, suggesting 9.9% growth from the figure reported in the year-ago quarter.
The consensus estimate for LULU’s first-quarter earnings is pegged at $2.39 a share, up 4.8% from the year-ago quarter. The consensus mark has dipped a penny in the past seven days.
Planet Fitness PLNT currently has an Earnings ESP of +3.57% and a Zacks Rank of 3. PLNT is likely to have registered top and bottom-line growth in its first-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $249.9 million, suggesting 12.4% growth from the figure reported in the year-ago quarter.
The consensus estimate for Planet Fitness’ first-quarter earnings is pegged at 50 cents per share, suggesting 22% growth from the year-ago quarter. The consensus mark has been stable in the past 30 days.
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Central Garden & Pet Company (CENT) : Free Stock Analysis Report
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