Shares of GSX Techedu (NYSE:GSX) jumped on Tuesday after the Chinese education company reported its fourth-quarter results. GSX beat analyst estimates across the board, and both revenue and net income soared. The stock was up 11% at 11:40 a.m. EST.
GSX reported fourth-quarter revenue of 935 million yuan, up more than 400% from the prior-year period. That works out to about $134 million at current exchange rates, ahead of the average analyst estimate by about $12.6 million. Gross billings soared nearly 400% to 1.58 billion yuan, while total enrollments surged 290% to 1.12 million.
Net income was up 659% to 197.8 million yuan. In U.S. dollars, earnings per share were $0.10, beating analyst expectations by $0.02.
For the first quarter of 2020, GSX expects to produce revenue between 1.086 billion and 1.106 billion yuan, up a bit more than 300% year over year.
"Going forward, we will continue to enhance the quality of our courses and services and leverage technology to optimize operational efficiency in order to generate long-term sustainable growth healthy," said GSX CFO Shannon Shen.