TAL International Group Beats on the Top Line

Seth Jayson, The Motley Fool
Updated

TAL International Group (NYS: TAL) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), TAL International Group beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share increased. GAAP earnings per share expanded significantly.


Gross margins contracted, operating margins dropped, net margins increased.

Revenue details
 TAL International Group tallied revenue of $172.0 million. The 11 analysts polled by S&P Capital IQ expected net sales of $157.0 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $150.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $1.07. The 10 earnings estimates compiled by S&P Capital IQ predicted $1.07 per share. Non-GAAP EPS of $1.07 for Q2 were 7.0% higher than the prior-year quarter's $1.00 per share. GAAP EPS of $1.12 for Q2 were 29% higher than the prior-year quarter's $0.87 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 80.4%, 290 basis points worse than the prior-year quarter. Operating margin was 44.3%, 900 basis points worse than the prior-year quarter. Net margin was 22.0%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $162.7 million. On the bottom line, the average EPS estimate is $1.14.

Next year's average estimate for revenue is $641.9 million. The average EPS estimate is $4.43.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TAL International Group is outperform, with an average price target of $47.27.

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The article TAL International Group Beats on the Top Line originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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