Why Carter's (CRI) Is Up Today

NEW YORK (TheStreet) -- Carter's (CRI) was gaining 7.8% to $73.98 Wednesday after beating analysts' estimates for earnings and revenue with its fourth quarter results.

The clothing company posted earnings of $1.02 a share in the fourth quarter, beating the Capital IQ Consensus Estimate of $1.01 a share by 1 cent. Revenue rose 11.6% from the year-ago quarter to $769.6 million. Analysts estimated revenue of $759.95 million for the quarter.

Looking to the first quarter, Carter's expects earnings to grow between 10% and 15% to about 87 cents to 91 cents a share. Analysts expect earnings of 86 cents for the quarter. The company expected revenue to grow by 8-10% to about $638.3 million to $650.1 million, compared to analysts' estimates of $648.7 million.

Must read: Relative Strength Alert For Carter's

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TheStreet Ratings team rates CARTER'S INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate CARTER'S INC (CRI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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