New Oriental Education Q3 Results Climb, Top Estimates; Sees Higher Q4 Revenues

(RTTNews) - New Oriental Education and Technology Group Inc. (EDU), the largest provider of private educational services in China, reported Monday that its third-quarter net income attributable to the company climbed 39.6% to $67.62 million from $48.44 million last year. Earnings per ADS grew 39.3 percent to $0.43 from $0.31 last year.

Adjusted attributable net income was $75.89 million or $0.48 per share, compared to prior year's $52.89 million or $0.34 per share.

On average, six analysts polled by Thomson Reuters expected earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly operating income increased 36% year-over-year to $57.52 million.

Net revenues increased 26.2% to $437.85 million from last year's $346.91 million. Analysts expected revenues of $419.71 million.

Total student enrollments in academic subjects tutoring and test preparation courses increased by 5.9% year-over-year to approximately 799,700 for the third quarter of 2017.

Looking ahead for the fourth quarter, New Oriental expects total net revenues to be in the range of $465.1 million to $479.9 million, representing year-over-year growth in the range of 18% to 22%. Analysts expect revenues of $473.64 million for the fourth quarter.

The projected growth rate of net revenues in functional currency Renminbi is expected to be in the range of 25% to 29% for the fourth quarter of fiscal year 2017.

In pre-market activity on the NYSE, the shares were gaining 0.14 percent to $62.90.