New Oriental Education & Technology Q4 Profit Misses Estimates

(RTTNews) - New Oriental Education & Technology Group Inc. (EDU) reported that its fourth quarter net income attributable to New Oriental increased by 115.3% year over year to $29.0 million. Net income per ADS was $0.17 compared to a loss of $1.12.

Non-GAAP net income attributable to New Oriental was $62.1 million, compared to a loss of $160.3 million, prior year. Non-GAAP net income per ADS was $0.37, compared to a loss of $0.94. On average, four analysts polled by Thomson Reuters expected the company to report profit per share of $0.51, for the quarter. Analysts' estimates typically exclude special items.

Fourth quarter total net revenues increased by 64.2% year over year to $860.6 million. The company said the growth was mainly driven by the increase in revenues from educational new business initiatives and East Buy private label products and livestreaming e-commerce business. Analysts on average had estimated $820.07 million in revenue.

The total number of schools and learning centers was 748 as of May 31, 2023, an increase of 36 and 4 compared to 712 as of February 28, 2023 and 744 as of May 31, 2022, respectively.

New Oriental expects total net revenues in the first quarter to be in the range of $983.2 million to $1.01 billion, representing year over year increase in the range of 32% to 35%.

Shares of New Oriental Education & Technology are down 2% in pre-market trade on Wednesday.

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