China's TAL Education Q3 revenue up 27%, slightly misses estimates

Overview

• China's smart learning provider's fiscal Q3 revenue rose 27% yr/yr, slightly missing expectations

• U.S.-listed company's Q3 net income surged 466.1% from the prior year

Outlook

• Company did not provide specific guidance for future quarters or the full year

Result Drivers

• TECHNOLOGY INTEGRATION - TAL Education focused on integrating technology into learning experiences, contributing to revenue growth

• COST MANAGEMENT - Selling and marketing expenses decreased by 2.8%, aiding in improved gross profit margins

• STRATEGIC INITIATIVES - Company emphasized strategic initiatives and resource allocation to build competitive advantages

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"

• Wall Street's median 12-month price target for TAL Education Group is $14.50, about 34.8% above its January 28 closing price of $10.76

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nPn2dC0WYa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.