TAL Education Group (NYSE:TAL) Releases Quarterly Earnings Results, Beats Expectations By $0.59 EPS

TAL Education Group (NYSE:TAL) announced its quarterly earnings data on Thursday. The company reported $0.75 EPS for the quarter, beating the consensus estimate of $0.16 by $0.59, FiscalAI reports. The firm had revenue of $758.38 million for the quarter, compared to the consensus estimate of $719.40 million. TAL Education Group had a net margin of 17.64% and a return on equity of 14.87%.

Here are the key takeaways from TAL Education Group’s conference call:

• Strong first-quarter results: Revenue rose 32% year over year in U.S. dollar terms, while non-GAAP operating income increased 492% and operating margin expanded to 19.6% from 4.4%. Management attributed the improvement to operating leverage and lower sales and marketing expenses.
• Peiyou remains a key growth engine. Offline enrichment revenue and enrollment grew at double-digit rates, retention stayed above 80%, and TAL is expanding its network selectively across more than 600 learning centers in 44 cities and select international markets.
• Learning-device revenue grew year over year, with more than 2 million weekly active devices, an approximately 80% weekly active rate, and about one hour of daily usage per device. However, management expects continued market volatility from competition, shifting consumer sentiment, and rising memory-chip costs, prompting SKU and inventory optimization.
• Management expects revenue growth to moderate in the next quarter as the business scales, but remains committed to improving full-year fiscal 2027 operating margins. Higher investment valuations boosted other income this quarter, though executives cautioned that such gains may not recur.
• TAL extended its share-repurchase authorization through July 2027, with up to approximately $393.7 million available; it repurchased about $41 million of shares during the quarter and said it intends to pursue a more systematic approach to shareholder returns.

TAL Education Group Price Performance

Shares of NYSE TAL traded up $0.14 during midday trading on Friday, reaching $12.48. 5,672,229 shares of the stock traded hands, compared to its average volume of 3,896,498. The company’s 50 day moving average is $9.87 and its 200 day moving average is $10.76. TAL Education Group has a one year low of $8.88 and a one year high of $13.37. The stock has a market capitalization of $6.92 billion, a PE ratio of 13.42, a P/E/G ratio of 0.93 and a beta of 0.08.

Hedge Funds Weigh In On TAL Education Group

A number of institutional investors and hedge funds have recently made changes to their positions in the business. AQR Capital Management LLC purchased a new position in TAL Education Group in the first quarter worth about $258,000. State Street Corp boosted its holdings in shares of TAL Education Group by 2.2% in the 2nd quarter. State Street Corp now owns 7,536,671 shares of the company’s stock worth $77,025,000 after purchasing an additional 165,662 shares during the period. AXA S.A. bought a new position in shares of TAL Education Group during the 2nd quarter valued at approximately $284,000. Quantinno Capital Management LP raised its holdings in TAL Education Group by 43.1% during the 2nd quarter. Quantinno Capital Management LP now owns 35,750 shares of the company’s stock valued at $365,000 after buying an additional 10,775 shares during the period. Finally, California State Teachers Retirement System lifted its position in TAL Education Group by 0.9% in the second quarter. California State Teachers Retirement System now owns 267,434 shares of the company’s stock worth $2,733,000 after buying an additional 2,275 shares during the last quarter. 37.79% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Wall Street Zen downgraded TAL Education Group from a “buy” rating to a “hold” rating in a research note on Sunday, July 12th. New Street Research set a $13.60 price objective on shares of TAL Education Group in a research report on Friday. Zacks Research downgraded shares of TAL Education Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 23rd. Weiss Ratings upgraded shares of TAL Education Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, June 11th. Finally, Jefferies Financial Group assumed coverage on shares of TAL Education Group in a research note on Friday. They set a “hold” rating for the company. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $14.80.

TAL Education Group Company Profile

TAL Education Group is a leading provider of after-school tutoring services in China, specializing in K-12 academic instruction. The company offers a range of programs designed to help primary and secondary school students strengthen their core competencies in subjects such as mathematics, English, Chinese language and science. TAL leverages both in-person learning centers and digital platforms to deliver its curriculum, aiming to support student progress through interactive lessons and personalized study plans.

Founded in 2003 and headquartered in Beijing, TAL Education Group has grown into one of China’s largest private education firms.