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

TAL Education Group (NYSE:TAL) issued 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 during 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 Stock Performance

Shares of TAL Education Group stock traded up $0.12 during midday trading on Friday, hitting $12.46. The company had a trading volume of 5,342,739 shares, compared to its average volume of 3,895,319. TAL Education Group has a 52-week low of $8.88 and a 52-week high of $13.37. The stock has a market capitalization of $6.90 billion, a P/E ratio of 13.42, a P/E/G ratio of 0.93 and a beta of 0.08. The company has a 50 day moving average of $9.87 and a 200 day moving average of $10.76.

Wall Street Analysts Forecast Growth

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

Institutional Investors Weigh In On TAL Education Group

A number of institutional investors have recently modified their holdings of TAL. Quarry LP bought a new position in shares of TAL Education Group during the third quarter valued at $42,000. DV Equities LLC bought a new position in TAL Education Group in the 4th quarter worth about $49,000. Daiwa Securities Group Inc. boosted its stake in TAL Education Group by 194.9% in the 4th quarter. Daiwa Securities Group Inc. now owns 5,750 shares of the company’s stock worth $63,000 after purchasing an additional 3,800 shares in the last quarter. CIBC Asset Management Inc bought a new position in TAL Education Group in the 4th quarter worth about $120,000. Finally, Brooklyn Investment Group grew its position in TAL Education Group by 386.0% during the 3rd quarter. Brooklyn Investment Group now owns 11,080 shares of the company’s stock valued at $124,000 after purchasing an additional 8,800 shares during the last quarter. 37.79% of the stock is owned by hedge funds and other institutional investors.

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.