Why TAL Education Group Stock Lost 16% in July
Chinese private tutoring specialist TAL Education (NYSE: TAL) trailed the market last month by shedding 16% compared to a 1% uptick in the S&P 500, according to S&P Global Market Intelligence. The decline put shares back to roughly even with the wider market so far in 2019. They had been higher by nearly 50% at other points in the year.
Image source: Getty Images.
July's dip followed mixed second-quarter earnings results that left investors wanting more. TAL Education revealed solid sales growth late in the month, with revenue rising 28% as the company gained students in both its physical and online classrooms. However, expenses like teacher compensation soared. TAL Education also spent far more cash on marketing and promotion to keep enrollment rising. These negative trends caused operating income to fall 24% to $57 million. Earnings slipped into negative territory, with per share profits worsening to a $0.01 loss compared to an $0.11 gain a year earlier.
Source Fool.com
