New Oriental Education Misses Q2 Estimates

New Oriental Education & Technology (NYSE: EDU  ) posted Q2 results that disappointed the market. The China-based company posted a loss of just under $9 million, or $0.06 per diluted share, compared with a profit of $7.5 million the same quarter the year before. Analysts had forecast negative EPS of around $0.04 for the latest quarter. Net revenues advanced strongly, by 30% to $166 million, but the market expected a slightly higher figure.

Meanwhile, New Oriental Education reported that total student enrollments grew by 7% year over year to roughly 505,000. The number of schools and learning centers also advanced, to 744 from Q2 2012's 726.

The company also provided top line guidance for its current quarter. It anticipates taking in total net revenues of $212 million to $221 million. It did not provide an an estimate for net profit.


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  • Report this Comment On February 03, 2013, at 10:14 AM, elbernstein wrote:

    Anyone looking for a little more perspective on New Oriental and interested in what's happening on the ground with their operations may want to take a look at this report.

    The company is planning to close more than 200 training centers and lay off between 1000 and 1500 workers. It seems operations will remain unaffected until June:

    http://ednewschina.com/?p=380

  • Report this Comment On February 03, 2013, at 10:19 AM, elbernstein wrote:

    excuse me, that should say over 20 training centers

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