New Oriental Education And Technology Q3 Profit Declines - Quick Facts

(RTTNews) - New Oriental Education and Technology Group Inc. (EDU) posted third-quarter fiscal 2015 net income attributable to New Oriental of US$40.97 million, or US$0.26 per ADS, down from US$42.08 million, or US$0.27 per ADS in the comparable quarter last year.

On a non-GAAP basis, net income attributable to New Oriental for the latest third quarter amounted to US$45.43 million, or US$0.29 per ADS, compared to US$47.44 million or US$0.30 per ADS in the prior year period.

On average, 6 analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.

Total net revenues for the third quarter of 2015 were US$287.73 million, up 13.1% from US$254.41 million, last year. Wall Street estimated revenues of $284.76 million for the quarter.

Net revenues from educational programs and services for the third fiscal quarter were US$262.0 million, representing a 14.8% increase year-over-year. The growth was mainly driven by increases in student enrollments in K-12 after-school tutoring courses and in average selling price of test preparation courses.

Separately, the company announced that Stephen Zhihui Yang, the current Vice President of Finance, will be promoted to Chief Financial Officer or CFO of the company, effective April 21, 2015.

Louis Hsieh, the current Chief Financial Officer, will remain as the company's President, overseeing overall corporate strategy and business development, and will continue to serve as a member of the board of directors.

The Company expects a smooth transition as Hsieh and Yang have worked together at the company for more than nine years.