Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of children's clothing company Carter's
So what: Carter's beat was so wide -- adjusted EPS of $0.63 versus the consensus of just $0.44 -- that analysts are being forced to raise their growth expectations yet again. The shares have been on fire over the past year on strong domestic sales, and management now seems to be channeling that momentum internationally.
Now what: Looking ahead, Carter's now sees 2012 adjusted EPS of $2.40-$2.50, also ahead of the average analyst estimate of $2.32. "We expect to see the benefit of lower cotton prices in the second half of 2012, and we are forecasting good growth in sales and profitability this year," CEO Michael Casey said. With the stock up about 70% over the past year and trading at a 20-plus P/E, however, much of that optimism might already be baked into the price.
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