TAL Education Group (ADR) (NYSE:TAL) shares spiked after the Chinese tutoring service recently came out with its triple-profit report for its fiscal third quarter. The profit was due to heavy enrollment by the students across all the cities where its branches operate. TAL Education is the provider of K-12 after-school classes.
Based in Beijing, the tutoring service saw EPS vault 168% to seven cents/year ADC from last year as revenue rose 66% to $433 million. According to Zacks Investment Research, the bottom-line results merely met the expectations of Wall Street however, they did top Thomas Reuters estimates by one penny.
Revenue for TAL topped $419.2 million forecasts from Thomas Reuters. The total enrollments for the service increased 85% year-over-year to more than 1.5 million students in the third quarter. TAL was up 86% over the first nine months of fiscal 2017 to roughly 4.8 million students.
TAL Increase Classroom Capacity To Increase Student Growth
According to TAL’s chief financial officer, Rong Luo, they recently added classroom capacity in order to drive robust student enrollment growth thereby affirming their commitment to technology-based educational reform. The company also offers small classes and online courses which have also contributed to the growth in a number of enrollments.
Luo stated that TAL will continue to run pilots in artificial intelligence and other cutting-edge areas with the aim to create innovative ways of serving the customers better. The biggest Chinese tutoring service reported a net income of $40.7 million in the third quarter, up by 198% from a year ago.
The shares of the education group that operates under Services sector plummeted-2.62% in the last trading session. It has a current ratio of 1.10 indicating that it has the capacity of total assets to cover its long- term as well as short-term obligations.
The firm has debt to equity ratio of 0.34 and its long-term debt to equity ratio was 0.34. The stock of TAL traded on impressive volume of 10.81 million comparing to the average volume of 5532.00 shares.