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

TAL Education Group (NYSE:TAL) issued its quarterly earnings data on Thursday. The company reported $0.75 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.59, FiscalAI reports. TAL Education Group had a return on equity of 14.87% and a net margin of 17.64%.The firm had revenue of $758.38 million during the quarter, compared to analysts’ expectations of $719.40 million.

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 Stock Performance

TAL stock traded up $0.12 during midday trading on Friday, reaching $12.46. The stock had a trading volume of 5,194,988 shares, compared to its average volume of 3,894,667. The firm has a fifty day simple moving average of $9.87 and a two-hundred day simple moving average of $10.76. TAL Education Group has a 52-week low of $8.88 and a 52-week high of $13.37. The stock has a market cap of $6.90 billion, a PE ratio of 13.38, a P/E/G ratio of 0.93 and a beta of 0.08.

Analyst Ratings Changes

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of TAL Education Group in the fourth quarter worth about $213,329,000. Bank of America Corp DE boosted its position in TAL Education Group by 14.3% in the second quarter. Bank of America Corp DE now owns 14,060,760 shares of the company’s stock valued at $143,701,000 after buying an additional 1,759,945 shares during the last quarter. Tiger Pacific Capital LP boosted its position in TAL Education Group by 6.2% in the second quarter. Tiger Pacific Capital LP now owns 9,233,398 shares of the company’s stock valued at $94,365,000 after buying an additional 541,919 shares during the last quarter. State Street Corp increased its holdings in TAL Education Group by 3.5% in the 4th quarter. State Street Corp now owns 7,818,834 shares of the company’s stock worth $85,303,000 after buying an additional 265,138 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its holdings in TAL Education Group by 27.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 5,848,885 shares of the company’s stock worth $63,811,000 after buying an additional 1,274,883 shares during the period. 37.79% of the stock is owned by institutional investors and hedge funds.

About TAL Education Group

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.