Tal Education (NYSE:TAL) shares jumped nearly 8% in the early session today after the Chinese learning solutions provider announced its results for the third quarter.
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While maintaining a focus on its core businesses, TAL is also looking at additional avenues for growth. During the quarter, revenue increased by 60.5% year-over-year to $373.5 million, outperforming expectations by $41.9 million. Earnings per American Depository Share (EPADS) of $0.0 came in better than estimates by $0.01.
Impressively, the company’s gross profit jumped by 54.4% to $200.3 million, and non-GAAP net loss per ADS declined by 91.1% compared to the year-ago quarter. Further, net cash generated from operating activities stood at $247.1 million. The company had a cash pile of $2.19 billion and $974.2 million in short-term investments at the end of the quarter.
Further, TAL has appointed Dr. Yachao Liu, its current COO, as a new director on its board. The new appointment follows the resignation of Yunfeng Bai as TAL’s director earlier this week.
Is TAL a Good Buy?
Overall, the Street has a Strong Buy consensus rating on TAL Education, and the average TAL price target of $12.66 implies a 12% potential upside in the stock. That’s on top of a nearly 40% jump in the company’s share price over the past year.
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