Overview

* TAL Education ( TAL ) fiscal Q1 revenue grows 38.8% yr/yr, misses analyst expectations, per LSEG data

* Co reports operating income of $14.3 mln, reversing prior yr loss

* Earlier in the week, TAL announced $600 mln share repurchase plan

Result Drivers

* LEARNING SERVICES - Growth in learning services contributed to revenue increase, per CFO Alex Peng

* AI-POWERED DEVICES - New AI-powered devices, including P4, S4, and T4 models, expanded audience reach

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Miss $575 mln $584.20

Revenue mln (5

Analysts

)

Q1 Net $31.30

Income mln

Q1 $14.30

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"

* Wall Street's median 12-month price target for TAL Education Group ( TAL ) is $12.63, about 20.1% above its July 30 closing price of $10.09

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)