Sells CRI short 98.74

25-Feb-16 06:22 ET
Carter Holdings beats by $0.11, beats on revs; guides Q1 EPS, revs below consensus; guides FY16 EPS below consensus, revs above consensus  (88.19)

Reports Q4 (Dec) earnings of $1.40 per share, $0.11 better than the Capital IQ Consensus of $1.29; revenues fell 0.3% year/year to $866.54 mln vs the $854.29 mln Capital IQ Consensus.

  • Co issues downside guidance for Q1, sees EPS of ~$0.97 (Comparable to prior year) vs. $1.10 Capital IQ Consensus Estimate; sees Q1 revs of ~$712.15 mln (+~4%) vs. $726.56 mln Capital IQ Consensus Estimate.
  • Co issues mixed guidance for FY16, sees EPS of $4.98-5.07 (+~8-10%) vs. $5.11 Capital IQ Consensus Estimate; sees FY16 revs of ~$3.19-3.22 bln (+~6-7%) vs. $3.18 bln Capital IQ Consensus Estimate.
  • As part of the Company’s ongoing commitment to return capital to shareholders, the Company’s Board of Directors on February 24, 2016 authorized a new $500 million share repurchase program and approved a 50% increase ($0.11 per share) to its quarterly cash dividend, to $0.33 per share, for payment on March 25, 2016, to shareholders of record at the close of business on March 11, 2016.

Although CRI beat by 11 cents they guided down and they are way overvalued.

Resistance is $98.90 to $99.93.

Targets are $96.00 and $93.60.

This is a price action day trade.

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