TAL Education Clocks 77.2% Top-Line Decline In Q3 Hit By Seasonality & Forex Fluctuations

TAL Education Group TAL reported a third-quarter FY22 sales decrease of 77.2% year-on-year to $232.7 million, missing the consensus of $239.83 million.
Operating costs and expenses declined 76.6% Y/Y to $266.3 million.
Gross profit decreased 74.1% Y/Y to $129.7 million with a gross margin of 55.7%.
Operating loss for the quarter narrowed to $(32.9) million compared to a loss of $(108.4) million a year ago.
The company held $1.9 billion in cash and equivalents as of November 30, 2022.
Adjusted EPS of $(0.04) missed the analyst consensus of $0.02.
"Although the revenue of this quarter was affected by exchange rate fluctuations and seasonality,our new business has maintained the momentum of continuous development " said CFO Alex Peng.
Peng added, "We expect to continue our development in the fourth quarter, enhancing the value that we deliver to our customers while further refining our operating efficiency to strengthen our competitive position and drive sustainable, long-term growth of our business."
Price Action: TAL shares are trading higher by 0.38% at $8.00 in premarket on the last check Thursday.
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