Tarena tumbles on bigger-than-expected loss

VisionSys AI

05/06/2018 17:08

** Tarena International shares  TEDU.O  down as much as 25.1
pct at $7.11, lowest since August 2015
    ** Posts bigger-than-expected Q1 loss per share, missing
amalysts' estimates by the biggest margin in at least two years,
as per TR data 
    ** The Chinese professional education services provider says
the late timing of Chinese New Year, which fell near the end of
Feb, reduced business days and volume in seasonally weak Q1
 urn:newsml:reuters.com:*:nPn38d6Lla 
    ** Gross margin was 52 pct in Q1 vs. 61.6 pct a year ago due
to a rise in personnel cost and welfare expenses
    ** Expects revenue for Q2 to be 500 mln and 520 mln yuan,
well below analysts' expectation of 558.08 mln yuan
    ** Jefferies says net loss was due to a combination of
weaker demand and higher selling expenses and rev guidance range
suggests some headwinds persist; keeps its "hold" rating
    ** Among nine analysts covering stock, avg rating is "hold"
    ** TEDU shares nearly halved in value this year, including
session's losses  

 ($1 = 6.41 yuan)

 (Reporting by Shreyashi Sanyal in Bengaluru)
 ((RM: Shreyashi.Sanyal.thomsonreuters.com@reuters.net))