TAL: Attendee Capacity Growth Driving Better FY3Q21 Topline Results; Marketing For Online Education Business Continues To Soar

TAL will report FY3Q21 results on January 21st before the markets open with an 8am EST conference call. We are positive on TAL’s FY3Q21 performance. In FY3Q21, we believe TAL is likely to benefit from the higher growth of the number of normal-price courses and associated attendees in Peiyou as well as its continuing efforts in online expansions. Based on our data and calculations, we believe the company’s FY3Q21 revenue is likely to be higher than consensus at $1,030M (24.4% Y/Y growth vs. company’s guidance of 28% - 32% Y/Y growth) and our estimate, and likely to come in towards the higher-end of guidance. The revenue for its online education is likely to be $294M, up 83.8% Y/Y driven by the expansion in attendee capacity at 76.9 Y/Y growth, based on our data.