TAL Education Beats Fiscal Q1 Estimates on Student Enrollment Surge
TAL Education Group (NYSE: TAL) reported first-quarter fiscal 2021 results Thursday, beating projections thanks to high student enrollment figures.
The Beijing-based education after-school tutoring services provider said in a statement today that revenue in the quarter ending May 31 rose 35% year-over-year to $910.66 million on earnings per share of 13 cents. The results beat estimates of $886.93 million on earnings of 2 cents a share, as reported by Benzinga.
TAL said the growth of enrollment in small class offerings and online courses helped drive total student enrollments of normal priced long-term courses, which surged 72% from the same period in the preceding year to roughly 2.96 million.
"The first fiscal quarter revenue results were driven by a solid performance of online courses and the healthy growth of Xueersi Peiyou business," Rong Luo, the chief financial officer of TAL, said in a statement today.
He added, "Our offline business may still face some continued pressure due to the COVID-19 outbreak, but as progress is made in containing the spread of COVID-19, we are working on the gradual resumption of our offline activities across different business segments."
Unfortunately for TAL, its stock performance was not trading in the green with the stock falling 48 cents from Wednesday close, as of intraday. Despite today's slight fall, TAL has been on a tear since early May. Since its close on May 1, shares of TAL are up 58% to date. Today, the stock has carried a trading high of $79.36 per American depositary share and a low $76.29 per share, as of midday.
TAL, which stands for "Tomorrow Advancing Life" offers K-12 tutoring services through small classes, personalized premium services, and online courses. As of May 31, it had 936 learning centers in 90 cities.
Expect strong financials for TAL to continue as it anticipates to generate revenues in the range of $1,077.6 million to $1,105.0 million, representing year-over-year growth of between 18% and 21%.
Luo concluded in his statement today, "We remain fully confident about the market potential of China's education industry and the general progress towards resumption of regular work and school activities."
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