New Oriental Education Q1 Profit Rises, Tops View; Names New President

(RTTNews) - New Oriental Education & Technology Group (EDU), a provider of private educational services in China, announced Tuesday that its first-quarter attributable net income increased 14.4 percent to $128.5 million or $0.82 per ADS from last year's $112.36 million or $0.71 per ADS. Adjusted attributable net income was $132.3 million or $0.84 per ADS, compared to $115.13 million or $0.73 per ADS a year ago.

Analysts polled by Thomson Reuters had expected the company to earn $0.74 per share in the quarter. Analysts' estimates typically exclude special items.

Total net revenues increased 16.4 percent year-over-year to $458.5 million, while analysts were looking for $447.60 million. Operating income increased 17.5 percent year-over-year to $129.8 million.

Total student enrollments in academic subjects tutoring and test preparation courses increased 13.8 percent to 1,011,300.

Looking ahead, for the second quarter, New Oriental expects total net revenues to be in the range of $267.0 million to $276.4 million, representing year-over-year growth in the range of 13 percent to 17 percent.

Separately, the company announced the promotion of Chenggang Zhou to the position of President, effective January 5, 2016. At the same time, Louis Hsieh will step down as President of New Oriental, but will remain on the Board of Directors and will serve as a non-executive Senior Adviser to the Company.

Zhou joined New Oriental in 2000 and has held multiple positions. As President, he will focus on corporate strategy and oversee overall business development of the Company.