New Oriental Education & Technology Group Posts Wider Loss In Q4; Issues Q1 Revenue Guidance

(RTTNews) - New Oriental Education & Technology Group Inc. (EDU) posted a fourth quarter non-GAAP net loss of $160.3 million, compared to a loss of $27.9 million, prior year. Non-GAAP net loss per ADS was $0.94 compared to a loss of $0.16.

Net loss attributable to New Oriental was $189.3 million, compared to a loss of $45.5 million, prior year. Net loss per ADS was $1.12 compared to a loss of $0.27.

Fourth quarter net revenues were $524.0 million, a 56.8% decrease year over year. The company said the decline was mainly due to the cessation of K-9 academic after-school tutoring services in compliance with the government policies in China.

New Oriental expects first quarter total net revenues to be in the range of $641.3 million to $680.6 million, a year-over-year decline in the range of 51% to 48%.

On July 26, the company's board authorized the repurchase of up to $400 million of the company's common shares during the period from July 28, 2022 through May 31, 2023.

Shares of New Oriental Education & Technology Group are down 8% in pre-market trade on Wednesday.

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