TAL Education Group American De Earnings: Here’s Why Investors are Excited Now

TAL Education Group American De (NYSE:XRS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.72%.

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TAL Education Group American De Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 8.33% to $0.11 in the quarter versus EPS of $0.12 in the year-earlier quarter.

Revenue: Rose 14.13% to $59.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: TAL Education Group American De reported adjusted EPS income of $0.11 per share. By that measure, the company beat the mean analyst estimate of $0.1. It beat the average revenue estimate of $59.35 million.

Quoting Management: “In the coming fiscal year, we plan to undertake new content initiatives to enhance our core competency as a specialized, top-level tutoring services provider in the market. We will maintain our organizational focus on the math and science areas, with additional emphasis on the broader math and sciences curriculum offered in middle schools and high schools. At the same time, we plan to invest in further enhancing our LeJiaLe-branded English offering to make it an even more attractive cross-sell to our students. Finally, we will increase investments that bring our business closer to the cross-section of where education meets technology. Specifically, we will promote more refined assessment metrics at each level in our curriculum, an ever more interactive classroom experience and greater convenience in the class registration process,” said TAL’s Chairman and Chief Executive Officer, Mr. Bangxin Zhang.

Key Stats (on next page)…

Revenue increased 21.88% from $48.9 million in the previous quarter. EPS increased 10% from $0.10 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.11 to a profit $0.12. For the current year, the average estimate has moved up from a profit of $0.47 to a profit of $0.5 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)