TAL Education Group American Depositary Shares Up 1% To $8.03 After Earnings Miss

Thursday, January 19, 2023 - TAL Education Group American Depositary Shares (TAL) reported downside earnings and revenues today.

Wall Street earnings per share (EPS) projections for TAL Education Group American Depositary Shares were at $0.02. The company missed those estimates with an EPS loss of $0.04 per share. The loss of $0.04 per share (which represents a -300% EPS surprise) led to the company's profits rising 56% compared to last year when the firm reported an EPS loss of $0.09 per share. The increase in TAL Education Group American Depositary Shares's annual growth rate represents how the business is performing well amid recent economic conditions.

Consensus analyst estimates were at $239.8 million. The Consumer Defensive company missed on those expectations for its third quarter with revenue of $232.7 million, a negative revenue surprise of $7.1 million (3%). The firm managed negative 77% growth year-over-year due to TAL Education Group American Depositary Shares reporting quarterly revenue of $1 billion in its year-ago quarter. TAL Education Group American Depositary Shares achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is up 1% to $8.03 after the report.

TAL Education Group American Depositary Shares's revenues declined at a faster pace than earnings.

The average recommendation from Wall Street analysts was a Hold which may get revised based on this new data.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 63. Meanwhile, the average Wall Street analyst rated the stock a Hold.

TAL Education Group is a smart learning solutions provider in China. K-9 academic afterschool tutoring used to account for the majority of TAL's revenue before the regulatory changes in 2021 that imposed a nonprofit requirement on the business. After spinning off its K-9 academic afterschool tutoring business, TAL realigned its focus toward enrichment learning, learning technology solutions, and content solutions.