Tarena International (NASDAQ:TEDU), an information technology professional education services company yesterday reported their first quarter 2016 financial results. Tarena reported first quarter earnings of a loss of $0.07 per share which fell short of analyst expectations of a loss of $0.03 per share. Tarena reported first quarter revenues increased 46.5% year over year to $41.3 million which beat analyst expectations of $39.26 million. Tarena projects second quarter revenues to be in between $51.5 and $52.5 million which fell short of analyst estimates of $52.96 million. Tarena projects full year 2016 revenues to be in between $230 and $236 million which was in line with analyst estimates of $235.78 million.
Tarena International, Inc. CEO’s Comments
I am pleased to report that our top line results in our first quarter of 2016 once again exceeded our expectations. We drove revenue mainly through student enrollment growth. In this quarter, we recorded an outstanding student enrollment of 23,030, representing 51.8% year-over-year growth. This enrollment result brings us strong confidence in achieving our revenue growth target for fiscal year 2016. In addition, from the first quarter of 2016, we started to implement our Teaching at Appropriate Levels” strategy and launched our advanced-level courses in Java, iOS, Android, Web front-end development, and Digital art, and as a result we successfully attracted more students,” said Mr. Shaoyun Han, Tarena’s Chairman and Chief Executive Officer.
We launched our kid education programs Tongcheng and Tongmei featuring IT training courses and non-IT training courses last December. In late March 2016, we rolled out kid programs in 5 more cities outside Beijing. In the first quarter of 2016, the total student enrollment of kid education programs was 246. We expect the kid education program course enrollment will further grow in the coming quarters. Mr. Han continued.
Although we only increased one learning center on a net basis in the first quarter of 2016, we took opportunities to optimize our facility resources, by opening four learning centers, merging three learning centers, and expanding existing facilities where appropriate. As a result, our total seat capacity increased from 42,434 as of December 31, 2015 to 44,004 as of March 31, 2016. Over the coming quarters and years, we will continue to focus on delivering high quality and differentiated education services to our students, enhancing their learning experiences and outcomes, and strengthening our leading position in professional education market. Mr. Han concluded. PR Newswire
TEDU Technical Analysis
TEDU opened trading yesterday at $10.32 which was up from the previous days trading of $10.31. TEDU closed trading yesterday at $10.42. Taking a look at the daily chart we can see the last time TEDU traded above this price level was on May 11th when it traded at $10.51. Taking a closer look at the daily chart we can see that TEDU has been on an overall upward trend dating back to February 11th when it traded at $8.40. TEDU has a float of 54.46 million shares and traded below the normal daily trading volume on Monday.
Company Profile
Tarena International, Inc., through its subsidiaries, primarily provides information technology (IT) professional education services through part-time and full-time classes in the People’s Republic of China. It offers education courses in 11 IT subjects, such as Java, .NET, C++, software testing, PHP, embedded, Android, iOS, Big Data, Web front-end development, and Linux and network engineering; and 3 non-IT subjects comprising digital art, online sales and marketing, and accounting through live distance instruction, classroom-based tutoring, and online learning modules. The company also provides two kid education programs, including Tongcheng and Tongmei. Tarena International, Inc. was founded in 2002 and is headquartered in Beijing, the People’s Republic of China.
By Jonathan G