What Does Wall Street See for New Oriental Education & Technology Group's Q4?

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New Oriental Education & Technology Group (NYSE: EDU ) is expected to report Q4 earnings on July 17. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict New Oriental Education & Technology Group's revenues will expand 36.7% and EPS will grow 20.0%.

The average estimate for revenue is $187.8 million. On the bottom line, the average EPS estimate is $0.12.

Revenue details
Last quarter, New Oriental Education & Technology Group notched revenue of $174.5 million. GAAP reported sales were 32% higher than the prior-year quarter's $132.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.18. GAAP EPS of $0.14 for Q3 were 6.7% lower than the prior-year quarter's $0.15 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 58.8%, 20 basis points better than the prior-year quarter. Operating margin was 9.5%, 650 basis points worse than the prior-year quarter. Net margin was 12.8%, 480 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $766.3 million. The average EPS estimate is $0.94.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 717 members rating the stock outperform and 152 members rating it underperform. Among 203 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 give New Oriental Education & Technology Group a green thumbs-up, and 63 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on New Oriental Education & Technology Group is outperform, with an average price target of $32.58.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of New Oriental Education & Tech. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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