Shares of TAL Education Group (NYSE: TAL) plummeted by 9.57% on Tuesday, October 23rd, as investors braced for the company's upcoming second-quarter earnings report, scheduled for release on Thursday before market open.
The sell-off in TAL's stock reflects growing investor concerns about the company's ability to meet or exceed analyst expectations. While TAL has consistently beaten revenue estimates over the past two years, its earnings performance has been more mixed, missing analysts' projections 25% of the time.
Analysts are projecting flat year-over-year earnings per share (EPS) of $0.10 for the second quarter, along with a 47.6% increase in revenue to $607.96 million. However, recent downward revisions to EPS estimates by analysts suggest a heightened level of uncertainty surrounding TAL's profitability in the face of intense competition and regulatory challenges in the Chinese education sector.
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