Free Post Earnings Research Report: TAL Education’s Revenue Surged 66.3%; Net Income Rocketed 198.4%

LONDON, UK / ACCESSWIRE / February 01, 2018 / Active-Investors.com has just released a free earnings report on TAL Education Group (NYSE: TAL). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TAL. TAL Education reported its third quarter fiscal 2018 operating and financial results on January 25, 2018. The education services provider outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, TAL Education Group most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

In the third quarter of fiscal year 2018, TAL Education's net revenues soared 66.3% to $433.3 million compared to $260.6 million in Q3 FY17, beating analysts' consensus of $419.2 million. The increase was mainly driven by an increase in total student enrollments, which increased by 85.0% to approximately 1.54 million from approximately 834,420 in the year ago same period. The increase in total student enrollments was primarily attributed to growth of enrollments in the small class offerings and online courses.

For Q3 FY18, TAL Education's gross profit advanced 64.9% to $212.2 million from $128.7 million in Q3 FY17. The Company's income from operations more than doubled, increasing by 102.1% to $44.6 million from $22.1 million in the year ago corresponding period. TAL Education's non-GAAP income from operations, which excluded share-based compensation expenses, increased by 82.6% to $56.8 million versus $31.1 million in Q3 FY17.

During Q3 FY18, net income attributable to TAL Education rocketed 198.4% to $40.7 million from $13.6 million in Q3 FY17. The Company's non-GAAP net income attributable to TAL Education which excluded share-based compensation expenses, advanced 133.3% to $52.9 million in the reported quarter versus $22.7 million in the year earlier comparable quarter.

TAL Education's diluted net income per ADS were $0.07 in Q3 FY18 compared to $0.03 diluted net income per ADS in Q3 FY17, reflecting growth of 167.7%. The Company's non-GAAP diluted net income per ADS, which excluded share-based compensation expenses, were $0.09, up 112.5% compared to non-GAAP diluted net income per ADS of $0.04 in the year ago same period. TAL Education's earnings beat Wall Street's estimates of $0.06 per ADS.

TAL Education's total student enrollments during the first nine months of fiscal year 2018 surged 86.1% on a y-o-y basis to approximately 4.83 million from approximately 2.60 million in the year ago same period. The Company's total physical network increased from 507 learning centers in 30 cities as of February 28, 2017, to 579 learning centers in 38 cities as of November 30, 2017.

Cash Matters

TAL Education's capital expenditures were $28.3 million, representing an increase of $11.2 million, for Q3 FY18 compared to capital expenditures of $17.1 million in Q3 FY17. The increase was principally attributed to leasehold improvements and the purchase of servers, computers, software systems, and other hardware for the Company's teaching facilities and mobile network research and development.

As of November 30, 2017, TAL Education had $1.13 billion of cash and cash equivalents and $184.3 million of short-term investments compared to $470.2 million of cash and cash equivalents and $229.5 million of short-term investments as of February 28, 2017.

As of November 30, 2017, TAL Education's deferred revenue balance was $1,074.9 million compared to $679.9 million as of November 30, 2016, representing an increase of 58.1%. The Company's deferred revenue primarily consisted of the tuition collected in advance for the fall semester, winter semester, and spring semester of Xueersi Peiyou small classes as well as the deferred revenue related to other businesses.

Business Outlook

For the fourth quarter of fiscal year 2018, TAL Education is forecasting net revenues in the range of $474.5 million and $480.8 million, representing an increase of 50% to 52% on a y-o-y basis, assuming no material change in exchange rates.

Stock Performance Snapshot

January 31, 2018 - At Wednesday's closing bell, TAL Education's stock was marginally up 0.37%, ending the trading session at $32.57.

Volume traded for the day: 2.88 million shares.

Stock performance in the last month – up 9.63%; previous three-month period – up 19.83%; past twelve-month period – up 142.27%; and year-to-date – up 9.63%

After yesterday's close, TAL Education's market cap was at $16.06 billion.

Price to Earnings (P/E) ratio was at 131.86.

The stock is part of the Services sector, categorized under the Rental & Leasing Services industry.

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