Carter's Q3 Results, Q4 Guidance Could Drive Sharp Share Moves, UBS Securities Says

MT Newswires Live10-19

Carter's (CRI) faces potential volatility as Q3 earnings and guidance could drive shares either higher or lower, UBS Securities said in a note Monday.

Analysts said they see roughly equal chances of an upside or downside reaction to Carter's upcoming earnings.

An earnings beat and raised guidance could lift the stock's valuation, while a low-quality beat along with weaker-than-expected Q4 guidance could lead investors to view the business as slowing, with higher oil and cotton prices likely pressuring margins, according to the note.

The options market expects a 14.9% share price move around the report, well above the historical average of 5.6%, the investment firm said.

The analysts expect a modest Q3 earnings beat and Q4 earnings guidance of $1.50 to $1.75 per share, with no change to the full-year outlook. The company is estimated to report Q3 financial results in the last week of October.

UBS Securities lowered its price target on Carter's to $38 from $41, and kept its neutral rating.

Price: 32.14, Change: +0.69, Percent Change: +2.19

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment