New Oriental Education continues meteoric rise, beats estimates
New Oriental Education and Technology Group Inc. (New Oriental) reported earnings for the fourth quarter of its fiscal year, beating analysts’ estimates and returning strong performance across pretty much every metric. The company has increasingly focused on the lucrative K-12 private education opportunities in China. The country’s newly minted middle class sees education as a top priority, and that’s pushing New Oriental’s performance to impressive levels.
The company saw its earnings per share increase to $0.41 against predictions of $0.38. It also delivered a net revenue increase of 23.2%, a rise in student enrollments of 36.9%, and an increase in operating income of 39.7%. All of these figures are quarterly (rather than annual), and reported against the same period in the previous year.
New Oriental is up an incredible 92% so far this year!
SOURCE: Yahoo Finance
For the full fiscal year, and on a year-over-year basis, the company saw net revenues increase by 21.7%, student enrollments up 33.3%, and operating income increase by 31.8%.
New Oriental’s chief executive officer, Chenggang Zhou, said:
"During the fiscal year, we continue to focus firmly on executing our "Optimize the Market" strategy. In order to maintain a healthy balance between top line and bottom line growth, we moderately accelerated our capacity expansion in some cities with strong growing momentum supported by efficient operations in the fourth quarter of fiscal year 2017. During the quarter, we added a net of 47 learning centers in around 30 existing cities, opened two new schools and a new learning center in the city of Zhangzhou and Nanyang, and rolled out two dual-teacher model schools in the city of Anyang and Handan.”
Dominion holds New Oriental Education and Technology Inc. in its Global Trends Luxury Fund.
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