Earnings Estimates Highlights: New Oriental Education & Technology Group Inc. (NYSE:EDU)

New Oriental Education & Technology Group Inc. (NYSE:EDU) reported earnings for the three months ended Feb2016 on April 19, 2016. The company earned $0.31 per share on revenue of $346.91M. Analysts had been modeling earning per share of $0.28 with $335.95M in revenue.

New Oriental Education & Technology Group Inc. (EDU) on April 19, 2016 announced its unaudited financial results for the fiscal quarter ended February 29, 2016, which is the third quarter of New Oriental’s fiscal year 2016.

Financial Highlights for the Third Fiscal Quarter Ended February 29, 2016

• Total net revenues increased by 20.6% year-over-year to US$346.9 million for the third fiscal quarter of 2016.


• Operating income increased by 32.6% year-over-year to US$42.3 million for the third fiscal quarter of 2016.


• Net income attributable to New Oriental increased by 16.8% year-over-year to US$48.4 million.

Financial Results for the Third Fiscal Quarter Ended February 29, 2016

Net Revenues

For the third fiscal quarter of 2016, New Oriental reported net revenues of US$346.9 million, representing a 20.6% increase year-over-year. Net revenues from educational programs and services for the third fiscal quarter were US$313.3 million, representing a 19.5% increase year-over-year. The growth was mainly driven by increases in student enrollments in K-12 after-school tutoring courses.

Total student enrollments in academic subjects tutoring and test preparation courses in the third fiscal quarter of 2016 increased by 25.2% year-over-year to approximately 755,100.

New Oriental Education & Technology Group Inc. earnings per share showed a decreasing trend of -10.2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 177%.Analysts project EPS growth over the next 5 years at 18.67%. It has EPS annual growth over the past 5 fiscal years of 19.6% when sales grew 26.4. It reported 20.6% sales growth, and 16.2% EPS growth in the last quarter.

The stock is trading at $42.25, up 138.34% from 52-week low of $18.09. The stock trades down -1.79% from its peak of $43.58 and -5.87% below the consensus price target of $39.77. Its volume clocked up at 13.05 million shares which is higher than the average volume of 1.44 million shares. Its market capitalization currently stands at $6.67B.