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Carter's Earnings: A Preview

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  • CRI

Carter's (NYSE: CRI) announces its next round of earnings this Friday, October 23. Here is Benzinga's everything-that-matters guide for this Friday's Q3 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Carter's reporting earnings of $1.57 per share on revenue of $878.52 million. Carter's reported a per-share profit of $1.87 when it published results during the same quarter last year. Sales in that period totaled $943.32 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

View more earnings on CRI

The Wall Street estimate would represent a 16.04% decline in the company's earnings. Revenue would be down 6.87% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

EPS Estimate

-0.25

0.24

2.89

1.70

EPS Actual

0.54

-0.81

2.81

1.87

Revenue Estimate

506.12 M

674.90 M

1.10 B

935.78 M

Revenue Actual

514.88 M

654.47 M

1.10 B

943.32 M

Stock Performance

Over the last 52-week period, shares are down 14.98%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Carter's is scheduled to hold the call at 08:30:00 ET and can be accessed here.

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