Why TAL Education Stock Jumped Today

What happened

Shares of TAL Education (TAL 0.81% ) surged today, up 15% as of 11:35 a.m. EST, after the company announced its fiscal third quarter results. The results were mixed compared to analysts’ expectations.

So what

Fiscal third-quarter revenue rose 35% to $1.12 billion, which was above the $1.08 billion in sales Wall Street was seeking. This translated to adjusted net income of $10.4 million, or $0.02 per American Depository Share (ADS). The consensus estimate called for $0.08 per ADS in adjusted earnings. The Chinese tutoring society now has nearly 3.4 million students enrolled in long-term courses.

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“In the third quarter, alongside the effective measures the Chinese government has taken to continuously improve the public health situation and the economy, we are pleased to see that our tutoring business also demonstrated on-track performance over the course of the year. this fiscal quarter,” Chief Financial Officer Rong Luo said. in a report. “Looking forward, we will continue to do everything we can to optimize our products, services and technology, and further develop our comprehensive training services with superior content and customer experience.”

Now what

TAL has expanded its physical network of learning centers and now has 990 facilities. the consumer discretionary company released fiscal fourth quarter guidance that calls for revenue of $1.175 billion to $1.2 billion, translating to 37% to 40% growth. This forecast is a bit light compared to the consensus estimate of $1.21 billion.

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Sarah J. Greer