UPDATE 1-Carter's delays Q3 results, shares sink

* Says delaying Q3 results

* Says expects to post results by Nov 12

* Shares down as much as 33 pct

Oct 27 (Reuters) - Carter's Inc (CRI.N) said on Tuesday it will delay posting results to decide an accounting issue, sending shares down as much as 33 percent.

The children's clothing retailer said it needs more time to compute results, so as to complete a review of its accounting for margin support to its wholesale customers.

"Wholesale was about 50 percent of Carter's revenues and 40 percent of segment profits before corporate allocations for the first half of '09," S&P analyst Marc Eiger said in a note.

The analyst cut his price target on the company's stock by $7 to $24.

Carter's, which was scheduled to report third quarter results Tuesday after market, said it now expects to report by Nov 12.

Shares of the company, which had sunk to a low of $19.17, were trading down 25 percent at $21.54 Tuesday afternoon on the New York Stock Exchange. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anthony Kurian)