NEW YORK (TheStreet) -- Shares of Carter's (CRI) - Get Report were gaining on heavy trading volume late Thursday afternoon after the company gave a positive earnings view for the 2016 fourth quarter.

Before today's market open, the Atlanta-based kids and babies' retailer said it expects adjusted earnings per diluted share between $1.65 and $1.70 for the 2016 fourth quarter. Analysts are looking for earnings of $1.65 per share.

Carter's projects fourth quarter revenue to climb 5% to 6% over last year, when the company generated $866.5 million in revenue. Wall Street expects revenue of $918.5 million for the quarter.

For 2016, the company anticipates earnings per share to increase 9% to 10% year-over-year on revenue growth of 5% to 6%. In 2015, Carter's reported full-year earnings of $4.61 per share on $3.01 billion in revenue.

Wall Street is projecting earnings of $5.06 per share on revenue of $3.18 billion for fiscal 2016.

For the 2016 third quarter, adjusted earnings of $1.61 per diluted share missed analysts' estimates of $1.67 per share. Revenue rose 6.1% year-over-year to $901.4 million but fell short of Wall Street's projections of $902.0 million.

Same-store sales rose 2.1% in the quarter. Analysts were looking for a 4.6% increase, according to FactSet.

More than 2.37 million shares of the company have traded hands so far today vs. the 30-day average of about 785,000 shares.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: CRI

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