Tag Archives: NYSE:EDU

New Oriental Education & Technology: Zacks’ Bull of the Day Play

China’s largest private education provider delivered another strong quarter. Analysts have been raising their price and earnings estimates after solid results, sending the stock back to a Zacks rank #1 (Strong Buy).

About the Company

Founded in 1993, New Oriental Education & Technology Group (EDU) is the largest provider of private educational services in China with over 26.6 million student enrollments. The company IPO’d on the NYSE in September 2006.

Headquartered in Beijing, New Oriental group currently has a network of 771 schools/learning centers and over 19,700 teachers in 56 cities. Additionally, it has a large online network with over 14.2 million users.

They provide a comprehensive range of educational products for students of all ages, including POP kids programs, summer camps, private schools, after school tutoring, adult English as well as domestic and overseas entrance tests preparation.

Excellent Quarterly Results

The company reported its Q1 FY 2017 (ended August 31) results on October 25.  Revenue for the quarter increased 16.5% year-over-year to $534.1 million. Net income increased 9.7% year-over-year to $141.1 million.

Strong growth was mainly attributable to 31.2% increase in total enrollments. Their K-12 all-subjects after-school tutoring business continued to perform well, with revenue up 28% year over year and enrollment up 46% year over year.

Strong Guidance

The management expects net revenues in the second quarter of fiscal year 2017 (ending November 31, 2016) to be in the range of $324.6 million to $335.1 million, representing year-over-year growth in the range of 17% to 21%.

Rising Estimates

After strong results, analysts have been raising their estimates for the company. Zacks Consensus Estimates for current and the next fiscal year have gone up to $1.76 per share and $2.29 per share respectively, from $1.75 and $2.18, before the results. Rising estimates sent the stock to a Zacks Rank # 1 (Strong Buy).

The Bottom Line

The company has a recognized brand name and a leadership position in areas like overseas test prep, English language tutoring, overseas study consulting and K-12 after school tutoring. Private education industry in China has been growing rapidly thanks mainly to rising incomes of the expanding middle class in the country. Strong brand awareness and pricing power will continue to drive profits going forward.

New Oriental group is also a pioneer in the online education industry in China. Of late, they have increased their spending on their online education platform, which is expected to boost revenues in the coming years.

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New Oriental Education & Technology: Zacks’Bull of the Day Play

China’s largest private education provider delivered another strong quarter. Analysts have been raising their price and earnings estimates after solid results, sending the stock back to a Zacks rank #1 (Strong Buy).

About the Company

Founded in 1993, New Oriental Education & Technology Group (EDU) is the largest provider of private educational services in China with over 24.2 million student enrollments. The company IPO’d on the NYSE in September 2006.

Headquartered in Beijing, New Oriental group currently has a network of 727 schools/learning centers and over 17,700 teachers in 54 cities. Additional it has a large online network with over 12.9 million users.

They provide a comprehensive range of educational products for students of all ages, including POP kids programs, summer camps, private schools, after school tutoring, adult English as well as domestic and overseas entrance tests preparation.

Excellent Quarterly Results

The company reported its Q3 FY 2016 (ended February 29) results on April 19.  Revenue for the quarter increased 20.6% year-over-year to $346.9 million. Net income increased 16.8% year-over-year to $48.4 million. Strong growth was mainly attributable to the ongoing increases in total enrollments. Their K-12 all-subjects after-school tutoring business continued to perform well, with gross revenue up 35% year over year and enrollment up 31% year over year.

Per CEO, “we continued to make solid progress on all fronts given improved product mix, positive market dynamics and increased efficiency in operations.”

Strong Guidance

New Oriental expects fourth fiscal quarter total revenues to be in the range of $378.1 million to $391.3 million, representing year-over-year growth in the range of 15% to 19%

Rising Estimates

After strong results, analysts have been raising their estimates for the company. Zacks Consensus Estimates for current and the next fiscal year have gone up to $1.47 per share and $1.82 per share respectively, from $1.39 and $1.74, before the results. Rising estimates sent the stock to a Zacks Rank # 1 (Strong Buy).

Investment by Tencent

In February, the company announced that an affiliate of Tencent has agreed to invest about $50 million in its online education platform, Koolearn.com. Tencent is a leading internet company in the world and its investment should further help drive growth of the online platform.

The Bottom Line

The company has a recognized brand name and a leadership position in areas like overseas test prep, English language tutoring, overseas study consulting and K-12 after school tutoring. Private education industry in China has been growing rapidly thanks mainly to rising incomes of the expanding middle class in the country. Strong brand awareness and pricing power will continue to drive profits going forward for this company.

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New Oriental Education & Technology: Zacks’ Bull of the Day Play

After an excellent quarterly performance, estimates for China’s top tutoring company have been on the uptrend, sending the stock back to Zacks rank #1 (Strong Buy) last week.

About the Company

Founded in 1993, New Oriental Education & Technology Group ((EDUSnapshot Report)) is the largest provider of private educational services in China with about 20.8 million student enrollments. The company IPO’d on the NYSE in September 2006.

Headquartered in Beijing, New Oriental group currently has a network of 722 schools/learning centers and over 17,000 teachers in 50 cities. Additionally, it has a large online network with over 10.4 million users.

Excellent Quarterly Results

The company reported its Q3 FY 2015 results on April 21.  Revenue for the quarter increased 13.1% year-over-year to US$287.7 million. The increase was mainly driven by strong performance of K-12 after-school tutoring business, which grew 22% year-over-year and accounted for almost 50% of total revenues.

Total enrollments for the quarter were flat year-over-year, but according to the management this was mainly due to the timing of the Chinese New Year in 2015, which delayed enrollments for spring classes. They opened 20 new centers during the quarter and closed 11, resulting in a net addition of nine.

Net income for the quarter was US$41 million, up 2.6% from a year ago. Net income per share came in at $0.26, significantly ahead of the Zacks Consensus Estimate of $0.20 per share.

Strong Guidance

The company expects total revenue in the fourth quarter of 2015 to be in the range of US$322 million to US$333.5 million, up about 12% to 16%, from the same quarter in 2014.

Rising Estimates

After strong results, analysts have been raising their estimates for the company. Zacks Consensus Estimates for current and the next fiscal year now stand at $1.23 per share and $1.48 per share respectively, up from $1.13 per share and $1.41 per share, 30 days ago.

The Bottom Line

EDU has a recognized brand name and a leadership position in areas like overseas test prep, English language tutoring, overseas study consulting and K-12 after school tutoring. Private education industry in China has been growing rapidly thanks mainly to rising incomes of the expanding middle class in the country.

The group is also a pioneer in the online education industry in China. Of late, they have increased their spending on their online education platform, which is expected to propel earnings growth in the coming years.

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