Is TAL's era of high growth over? As Profits fell by more than 90% with marketing costs rocketing up by 75%.
TAL (TAL: NYSE) announced a reduction in Q4 revenue forecast for its fiscal year 2020. Due to the outbreak, revenue will be reduced to USD 850 - 872 million, an increase of only 17% to 20% year on year.That was down 15% and a loss of USD 100 million from previous forecast of USD 959 - USD 980.9 million.
According to the above estimated revenue forcast of USD 872 million the company's growth rate will be the lowest ever recorded, which is not a positive sign specially after TAL's average revenue growth rate has been over 50%.This means that the era of high growth of TAL is over.