Carter’s, Inc. (CRI) reported a huge jump in earnings. Estimates are on the rise and the stock could be at a great entry point.
Company Description
Carter’s markets baby and young children’s apparel in the U.S. The company’s brands, which include OshKosh, Tykes and Child of Mine, are offered through department and retails stores.
An Exceptional Quarter
On Jan 15 Carter’s reported quarterly results that showed an 11% increase in sales to over $481 million. Net income jumped 53% to $49.1 million, or 84 cents per shares.
Michael D. Casey, Chairman and CEO said, “Our third quarter results were exceptional and better than we expected in nearly every component of our business.”
Estimates Jump
Following the report, the Zacks Consensus Estimate for full-year 2009 rose 25 cents to $2.11. Next year’s forecasts are averaging $2.30, up 19 cents.
These levels represent 52% and 9%, respectively.
Shares are also trading at solid valuations. The forward P/E is just under 12 times and the PEG ratio is about 1.2 times. The PEG is slightly higher than desired, but not too bad.
The Chart
Shares of CRI have been range-bound for the past month and a half. If shares get enough momentum and push through the resistance level, it will be a great entry point. Take a look below.
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