BEIJING - New Oriental Education & Technology Group Inc. (NYSE: EDU) reported better-than-expected first quarter earnings on Wednesday, but shares tumbled 6.3% after the company provided disappointing revenue guidance for the current quarter.
The Chinese education company posted adjusted earnings per ADS of $1.60 for its fiscal first quarter ended August 31, beating analyst estimates of $1.47. Revenue rose 30.5% year-over-year to $1.44 billion, in line with expectations.
However, New Oriental's outlook for the second quarter fell short of Wall Street forecasts. The company expects revenue between $851.4 million and $871.8 million, well below the consensus estimate of $1.03 billion.
"We are delighted to start our fiscal year 2025 with a healthy top line growth of 30.5%," said Michael Yu, New Oriental's Executive Chairman. He noted strong performance across the company's overseas test preparation, study consulting, and domestic test prep businesses.
Operating income jumped 42.9% to $293.2 million, while operating margin expanded to 20.4% from 18.6% a year earlier.
New Oriental ended the quarter with $4.9 billion in cash and investments. The company has repurchased approximately 9.8 million ADSs for $457.9 million under its current share buyback program.
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