TAL - Chinese ed-tech stocks gain after TAL earnings
Chinese education tech titans including New Oriental Education ( EDU ), Gaotu Techedu ( GOTU ), and TAL Education ( NYSE: TAL ) gained sharply on Thursday despite a downbeat earnings presentation from the latter.
For the fiscal second quarter, TAL Education ( TAL ) recorded a $47.6M drop in operating income sequentially and a net loss of $23.2M. The latter figure represented an over 77% drop from the prior year period.
The education provider also experienced some notable attrition in learner enrollment due to seasonality.
“In terms of learner enrollment, we recorded a quarter-over-quarter decrease in average learner enrollment from Q2 primarily due to seasonal fluctuation,” CFO Alex Peng told analysts. “However, if we compare the enrollment of Q3 to that of Q1, we recorded growth in learning enrollment between these two periods.”
He added that the company does not expect to break even in Q3 due to investment spending.
After tumbling in premarket action after the report, TAL Education ( TAL ) stock rebounded sharply to mark a nearly double-digit gain at the intraday high. New Oriental Education & Technology ( EDU ) +10.89% , Gaotu Techedu ( GOTU ) +8.38% , and 17 Education & Technology Group ( YQ ) +4.48% were among other notable gainers in the Chinese education space.
Read TAL Education’s earnings call transcript .
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Chinese ed-tech stocks gain after TAL earnings