New Oriental Education & Technology Group
The 10-second takeaway
For the quarter ended May 31 (Q4), New Oriental Education & Technology Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased.
Gross margins improved, operating margins contracted, net margins dropped.
New Oriental Education & Technology Group reported revenue of $193.3 million. The 12 analysts polled by S&P Capital IQ expected sales of $187.8 million on the same basis. GAAP reported sales were 41% higher than the prior-year quarter's $137.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The eight earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS of $0.10 for Q4 were 11% higher than the prior-year quarter's $0.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 59.5%, 80 basis points better than the prior-year quarter. Operating margin was 4.9%, 380 basis points worse than the prior-year quarter. Net margin was 8.4%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $353.8 million. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $1.21.
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 201 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 138 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 $32.31.
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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 Edu & 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.