New Oriental Education Posts Mixed Q4 Earnings, Guides Q1 Revenues Above Consensus
Portfolio Pulse from Lekha Gupta
New Oriental Education & Technology Group Inc (EDU) reported Q4 FY23 sales growth of 64.2% YoY to $860.6 million, beating the consensus of $820.1 million. The company's revenue was boosted by strong post-COVID demand recovery. However, operating costs and expenses rose 29.0% YoY to $812.5 million. Adjusted earnings per ADS of $0.37 missed the analyst consensus of $0.51. The company also repurchased approximately 5.9 million ADSs for about $191.7 million from the open market. For Q1 FY24, the company expects total net revenues of $983.2 million - $1,005.5 million, above the consensus of $939.47 million.
July 26, 2023 | 12:14 pm
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New Oriental Education & Technology Group Inc (EDU) reported strong Q4 FY23 sales but missed on earnings per ADS. The company also repurchased shares and provided an upbeat Q1 FY24 revenue guidance.
While EDU reported strong sales growth and provided an upbeat revenue guidance, the miss on earnings per ADS and the increase in operating costs and expenses could be concerning for investors. The company's share repurchase could provide some support to the stock. However, the stock is trading lower in the premarket, indicating a mixed reaction from the market.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100