TAL Education Group ADR

TAL: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$1.30	Stl	Kytcf

TAL Education Earnings: Mixed Results, Disappointing Guidance; Cut Fair Value Estimate to USD 5.50

Cheng Wang

Apr 28, 2023

TAL Education’s, or TAL’s, fiscal fourth-quarter (ending February 2023) revenue beat our estimate, but core profit missed expectation. More importantly, we are disappointed with the growth guidance for its learning services segment. While strong growth outlook for its content solutions segment should offset the shortfall in learning services, overall margin will be under pressure. We widen our fiscal 2024 net loss estimate to USD 71 million from USD 10 million. We now expect TAL to break even in fiscal 2026 instead of 2025. We cut our fair value estimate to USD 5.50 from USD 6.

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