Why Is QuantaSing Stock Gaining Today?

Zinger Key Points
  • QuantaSing launches $20M share repurchase program, affirming confidence in long-term growth prospects.
  • QuantaSing earlier said it anticipates 8.7%-12.3% YoY revenue increase in Q4, backed by robust financial position and performance.

QuantaSing Group Limited QSG shares are trading higher in the premarket session on Tuesday.

The Chinese online learning service provider authorized a share repurchase program under which it may repurchase up to $20.0 million of its Class A ordinary shares in the form of American depositary shares.

The repurchase is for twelve months, commencing on June 11, 2024.

“The Share Repurchase Program is well-aligned with our commitment to maximizing value for our shareholders and reflects the Board’s confidence in the Company’s continued growth and long-term prospects,” said Peng Li, QuantaSing’s Chairman and Chief Executive Officer.

On June 9 last year, the company announced that its board of directors had approved a share repurchase program of up to $20.0 million.

As of March 31, the company had cumulatively repurchased an aggregate of approximately 2.6 million ADSs for approximately $11.5 million under the program.

The company had cash and cash equivalents and short-term investments of $159.3 million as of March-end.

For the fourth quarter, the company expects its revenues to be in the range of RMB900.0 million to RMB930.0 million, representing a year-over-year increase of 8.7% to 12.3%.

Price Action: QSG shares are trading higher by 21.5% to $1.98 premarket at last check Tuesday.

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