ADR shares of Tal Education Group ($TAL) surged 21.25% on Thursday as the smart learnings products maker reported better-than-expected third-quarter earnings, lifting retail sentiment.

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The company's net revenues rose to $606.4 million from $373.5 million in the same period last year. That compares to analyst estimate of $541.36 million, Fly.com reported.

Its diluted net income per ADS stood at $0.06, beating estimates of $0.05, according to Fly.com.

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The company's non-GAAP net income, excluding share-based compensation expenses, came in at $38.6 million, compared to a net loss attributable of $1.9 million in the third quarter of fiscal year 2024.

"We achieved healthy year-on-year revenue growth this quarter. Our AI learning devices remained one of our faster-growing business lines and received encouraging user feedback and market recognition," Alex Peng, TAL's president & CEO, said. "We will continue to enhance our products' capabilities and adaptability across learning services and content solutions. As always, we are committed to helping more users discover learning solutions that meet their unique needs while also contributing positively to society."

Sentiment on Stocktwits improved to 'extremely bullish' from 'bullish' a month ago. Message volumes rose to 'extremely high' from 'high.'

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Wall Street analysts praised the results, with Citi analysts noting the results show the company's operational leverage as driving the margin expansion of its core education business, Fly.com reported.

Meanwhile, JP Morgan kept an 'Overweight' rating and $17.00 price target impressed by TAL's recent financial results, Investing.com reported.

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Tal stock is up 10.48% year-to-date.

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