TAL Education Group's stock surged 6.69% during pre-market trading on Thursday, following the release of its third-quarter financial results.
The significant price increase appears driven by the company's strong earnings performance. TAL Education reported quarterly adjusted earnings per share of $0.25, which substantially beat the analyst consensus estimate of $0.07 by 247.22%. This represents a 316.67% increase compared to the same period last year. Furthermore, the company reported net income of $130.6 million for the quarter, reversing a prior loss and marking a 466.1% surge from the prior year.
While quarterly revenue of $770.2 million slightly missed estimates, it still grew 27% year-over-year. The improved profitability was supported by effective cost management, including a 2.8% decrease in selling and marketing expenses, and strategic initiatives focusing on technology integration. Analyst sentiment remains positive, with an average "buy" rating and a median 12-month price target suggesting further upside potential.
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