Shares of TAL Education Group (NYSE:TAL) have jumped today, up by 10% as of noon EDT, after the Chinese tutoring company reported fiscal second-quarter earnings. Unlike last quarter, investors were pleased with the results.
Total revenue increased 54% to $699.8 million, resulting in non-GAAP operating income of $99 million. Non-GAAP net income was $95.1 million, or $0.16 per American depositary share (ADS). The Street had been modeling for $659.4 million in sales and an adjusted profit of $0.14 per ADS. The company finished the fiscal second quarter with $1.65 billion in cash and cash equivalents on the balance sheet.
Student enrollments soared 120% to 4.94 million, up from 2.24 million a year ago. TAL's board also authorized a $100 million share repurchase program.
"In the second quarter, our revenue and enrollments grew steadily, which was based on stable online and offline business performance," CFO Rong Luo said in a statement. "Looking ahead, we will continue to enhance product quality and customer satisfaction, and further our contribution to the healthy and sustainable development of the education sector."
In terms of guidance, TAL expects fiscal third-quarter revenue to be in the range of $563.2 million to $571.9 million, representing growth of 30% to 32%, which is below the $611.5 million in sales that analysts were forecasting. On a constant currency basis, TAL expects growth to be 35% to 37%.