TAL Education Group's stock plummeted 11.97% during intraday trading on Thursday, a sharp decline that came shortly after the company released its fourth-quarter financial results.
The company reported robust Q4 performance, with net revenue of $802.4 million beating the IBES estimate of $776.6 million. Adjusted net income reached $254.5 million, significantly surpassing the $83.1 million estimate, while non-GAAP earnings per ADS came in at $0.45, well above the $0.14 analyst consensus. Revenue grew 31.5% year-over-year from $610.2 million.
Despite these strong results, the stock experienced heavy selling pressure. This movement may reflect profit-taking behavior, as TAL Education shares had risen 5.8% during the quarter and gained 10.3% year-to-date prior to the earnings release. The decline occurred amid a mixed session for consumer stocks, with the consumer discretionary sector trading lower.
Comments