Why Xueda Education Group (XUE) Stock Is Down in After-Hours Trading Today

NEW YORK (TheStreet) -- Xueda Education Group  (XUE)  fell in after-hours trading Monday after the company reported second-quarter earnings that came up short of analysts' expectations.

Adjusted net income per American Depositary Share was 27 cents, down from 28 cents in the same period one year earlier, while revenue increased 5.4% year-over-year to $120.8 million from $114.6 million. The consensus estimate called for EPS of 29 cents on revenue of $131 million.

For the third quarter, the company expects an adjusted loss of 8 cents a share on revenue of $73 million, while the consensus estimate calls for EPS of 8 cents on revenue of $99 million.

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For the full year, the company expects adjusted EPS of 16 cents on net revenue of $347.5 million. The consensus estimate calls for EPS of 31 cents on revenue of $394.05 million.

The stock was down 13.17% to $4.02 in after-hours trading.

Separately, TheStreet Ratings team rates XUEDA EDUCATION GROUP -ADR as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate XUEDA EDUCATION GROUP -ADR (XUE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins."

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