Why GSX Techedu Stock Tanked This Morning

Shares of GSX Techedu (NYSE: GOTU) tanked by as much as 19% this morning after the company reported first-quarter earnings. The results were mixed compared to analyst expectations. As of 12 p.m. EST, the stock had somewhat recovered and was down only 7%.

Revenue in the first quarter came in at $296.2 million, ahead of the $292.4 million in sales that analysts were modeling for. That resulted in an adjusted net loss per American depository share (ADS) of $0.79, which was worse than the consensus estimate of $0.38 per ADS in losses. The Chinese consumer discretionary company, which provides educational services, reported gross billings of $180.3 million.

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Source Fool.com