TAL Education Group Q1 Profit Rises; Sees Q2 Revenues Above View - Quick Facts

(RTTNews) - TAL Education Group (XRS) reported that its first-quarter net income attributable to the company increased by 62.7% to $8.1 million, from $5.0 million in the first quarter of fiscal year 2013. Net income per ADS was $0.10, up from $0.06 per ADS in the year ago quarter.

Non-GAAP net income attributable to the company, which excluded share-based compensation expenses, increased by 38.5% to $9.9 million, from $7.2 million in the first quarter of fiscal year 2013. Non-GAAP net income per ADS rose to $0.13 from $0.09 last year.

Net revenues for the quarter increased by 24.5% year-over-year to $61.4 million from $49.3 million in the same period of the prior year. The increase was mainly driven by an increased number of total student enrollments combined with higher average selling prices or ASPs. Total student enrollments increased by 17.1% to approximately 192,650 from approximately 164,510 in the same period one year ago. The increase in total student enrollments was driven primarily by increases of enrollments in the small class offerings.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share and revenues of $58.52 million for the quarter. Analysts' estimates typically exclude special items.

Total net revenues for the second quarter of fiscal year 2014 are expected to be between $88.5 million and $90.5 million, representing an increase of 30% to 33% on a year-over-year basis. Analysts expect the company to report revenues of $81.30 million for the second-quarter.