New Oriental Education's Strong Revenue, Income Send Stock 3% Higher
New Oriental Education & Technology Group Inc. (NYSE: EDU), a private education company in China, reported strong financial results for the third fiscal quarter Tuesday, sending its shares nearly 3 percent higher.
The Beijing-based company said its revenue for the three months through February grew 29 percent year-over-year to $796.7 million, thanks to an increase in student enrollment in K-12 after-school tutoring courses. Total student enrollment jumped 82 percent to 1.6 million, according to the report.
"We are pleased to see continued acceleration of growth momentum in the third quarter of fiscal year 2019 and to achieve a top line growth of 28.9 percent, or 36.1 percent if computed in Renminbi," Michael Minhong Yu, New Oriental's executive chairman said in a statement. "Our key growth driver, the K-12 after-school tutoring business, achieved a year-over-year revenue growth of approximately 38 percent, or 46 percent if computed in Renminbi."
New Oriental said its net income was $97.4 million, or 62 cents per American depositary share in the third fiscal quarter of 2019, representing a 43 percent increase from the same period a year ago.
Stephen Zhihui Yang, the chief financial officer of New Oriental, said, "We are deeply encouraged not only by our strong top line performance, but also the improvement in our operating margin during the third quarter. We will continue to revamp all business lines with a standardized, modular and systematic approach, which will enable us to capture new growth opportunities and scale our business at higher efficiency. With these strategies in place, we are poised to continue to deliver sustainable and long-term value for our shareholders."
Recently, New Oriental's subsidiary, Koolearn Technology Holding Ltd. has completed its global offering of ordinary shares. The shares of Koolearn floated on the Hong Kong Stock Exchange on March 28 under the stock code "1797."
Shares of New Oriental Education rose $2.51 to $92.97 apiece Tuesday.
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