What's Going On With New Oriental Education Shares Today?
Portfolio Pulse from Nabaparna Bhattacharya
New Oriental Education & Technology Group, Inc. (NYSE:EDU) shares fell after reporting Q3 earnings per share of 63 cents, missing expectations of 79 cents, despite revenue beating estimates at $1.207 billion. The company saw significant year-over-year growth in revenues, operating income, and net income, attributed to new business initiatives and expansion in educational services. EDU expects Q4 revenues to increase by 28%-31% year-over-year.
April 24, 2024 | 2:04 pm
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New Oriental Education's shares declined after Q3 earnings per share of 63 cents missed expectations, despite higher revenues and growth in new business areas. The company anticipates a 28%-31% revenue increase in Q4.
The immediate negative reaction in EDU's stock price is primarily due to the earnings per share missing analyst expectations, a key metric for investors. Despite the revenue beat and positive growth outlook, the EPS miss has overshadowed these achievements in the short term. The forecasted revenue growth for Q4 indicates strong business momentum, but the short-term impact remains negative due to the earnings miss.
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RELEVANCE 100