TAL Education Group (NYSE:TAL) shares are trading higher in premarket Thursday after the third-quarter earnings result.
The company reported third-quarter FY25 sales growth of 62.4% year-on-year to $606.446 million, beating the analyst consensus estimate of $542.19 million.
Operating costs and expenses increased 53.9% Y/Y to $624.7 million. The gross profit shot up 59.6% Y/Y to $319.8 million with a gross margin of 52.7%.
The operating loss for the quarter narrowed to $17.4 million from a loss of $32.2 million last year.
The company held $2.2 billion in cash and equivalents as of November 30, 2024. Operating cash flow for the quarter was $378 million.
Non-GAAP net income per ADS of $0.06 beat the consensus estimate of $0.04.
“We achieved healthy year-on-year revenue growth this quarter. Our AI learning devices remained one of our faster-growing business lines and received encouraging user feedback and market recognition,” said President and CFO Alex Peng.
Price Action: TAL shares are trading higher by 13.57% at $10.36 in premarket at the last check Thursday.
Photo via Shutterstock.
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