Industry Analysts Just Upgraded Their TAL Education Group (NYSE:TAL) Revenue Forecasts By 10%

TAL Education Group (NYSE:TAL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that TAL Education Group will make substantially more sales than they'd previously expected.

After this upgrade, TAL Education Group's 19 analysts are now forecasting revenues of US$2.0b in 2025. This would be a substantial 37% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$1.9b in 2025. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

See our latest analysis for TAL Education Group

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that TAL Education Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 37% annualised growth until the end of 2025. If achieved, this would be a much better result than the 15% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. Not only are TAL Education Group's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for TAL Education Group this year. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at TAL Education Group.

That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect TAL Education Group to be able to reach break-even within the next few years. For more information, you can click through to our free platform to learn more about these forecasts.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.