TAL Education Q3 Profit More Than Doubles; Results Top Estimates - Quick Facts

(RTTNews) - TAL Education Group (XRS), China-based K-12 after-school tutoring services provider, reported that its third-quarter of fiscal year 2014 net income attributable to the company increased by 123.4% to $12.5 million, from $5.6 million in the third quarter of fiscal year 2013. Net income per ADS for the quarter was $0.15, up from $0.07 last year.

Non-GAAP net income attributable to the company, which excluded share-based compensation expenses, grew 85.6% to $14.6 million, from $7.9 million in the third quarter of fiscal year 2013.

Non-GAAP net income per ADS was $0.18, higher than $0.10 reported last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly net revenues were $73.5 million, an increase of 50.4% from last year's $48.9 million, mainly driven by an increased number of total student enrollments combined with increased average selling prices or ASPs. Four analysts estimated revenues of $70.75 million for the quarter.

Total student enrollments increased by 46.2% to approximately 224,810 from approximately 153,800 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.

ASP increased by 2.8% from $318 in the third quarter of fiscal year 2013 to $327 in the same quarter of fiscal year 2014. The growth in ASP was mainly driven by the hourly rate increases of a portion of the small class course offerings and the foreign exchange rate fluctuation.

Total net revenues for the fourth quarter of fiscal year 2014 are expected to be between $84.7 million and $87.1 million, representing an increase of 42% to 46% on a year-over-year basis. Analysts expect the company to report revenues of $80.21 million for the fourth-quarter.

For the fiscal year ending February 28, 2014, the company expects total net revenues to be in the estimated range of $311.6 million to $314.0 million, representing an increase of 37.9% to 39.0% year-over-year. Analysts expect the company to report revenues of $304.04 million for fiscal year 2014.