What happened
The largest provider of private-educational offerings in China also made for one of the most popular Chinese stocks on the market Wednesday. New Oriental Education & Technology Group (EDU 1.92%) saw its shares pop by 9%, thanks almost entirely to a highly encouraging set of quarterly results.
So what
Well before market open on Wednesday, New Oriental Education unveiled its third quarter of fiscal 2023 figures. The company's net revenue shot nearly 23% higher on a year-over-year basis to more than $754 million. More dramatically, the education services provider flipped to a non-GAAP (adjusted) net profit of $95.4 million, or $0.56 per American Depositary Share (ADS), from a loss of roughly that total in the same period last year.
Both headline numbers positively trounced analyst estimates. On average, prognosticators following the stock were modeling slightly more than $714 million on the top line and only $0.13 for per-ADS, adjusted net profit.
In its earnings release, New Oriental Education cited growth in its overseas test preparation and study segments as being particular catalysts for the overall improvements. The company also quoted its chairman Michael Yu as saying that in the quarter, "[W]e continued to make solid progress in all key business lines given a favorable environment of recovery as the pandemic subsides."
Now what
To top that off, New Oriental Education proffered guidance indicating the sun will continue to shine. It's expecting to book $801.8 million to $822.7 million in revenue for its current fiscal (fourth) quarter. This is not only a minimum of 53% higher than in the fourth quarter of fiscal 2022, it's well above the average analyst estimate of $661.7 million.
