New Oriental Education & Technology Group (NYSE:EDU) Reaches New 12-Month High After Strong Earnings

New Oriental Education & Technology Group, Inc. (NYSE:EDU)’s share price hit a new 52-week high on Wednesday following a stronger than expected earnings report. The stock traded as high as $63.78 and last traded at $57.8340, with a volume of 1216105 shares. The stock had previously closed at $55.97.

The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.11. The business had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.16 billion. New Oriental Education & Technology Group had a return on equity of 10.77% and a net margin of 7.36%.The company’s quarterly revenue was up 14.7% on a year-over-year basis. During the same quarter last year, the business posted $0.22 earnings per share.

Trending Headlines about New Oriental Education & Technology Group

Here are the key news stories impacting New Oriental Education & Technology Group this week:

• Positive Sentiment: Quarterly beat — New Oriental reported $0.45 EPS vs. $0.34 consensus and revenue of $1.191B vs. $1.16B expected; revenue rose 14.7% year-over-year, and net margin/ROE remain healthy. This earnings surprise is the primary catalyst for the share strength. Investing.com coverage
• Positive Sentiment: Company press release and filings confirm the results and provide detail on segment performance and financials — useful for modeling next quarters. PR Newswire release
• Positive Sentiment: Reduced short interest — January short interest fell ~23% (to ~4.2M shares), lowering potential short-squeeze risk and signaling reduced bearish positioning. This can support the stock on positive news. (Data reported 1/27)
• Neutral Sentiment: Guidance update unclear/partial — Management issued third-quarter revenue guidance ~ $1.3B but EPS guidance was not clearly provided in the bulletin; clarity on margins and enrollment trends will matter for forward estimates. See company announcement for details. Company press release / report
• Neutral Sentiment: Conference call & investor materials available — Management commentary on demand trends, margin drivers and channel mix will be the next market focus; listen to the call or read the transcript for color. MarketBeat transcript / press link
• Neutral Sentiment: Third-party commentary/comparisons — Broker and media comparisons (including a Nerdy/EDU comparison) may influence investor framing but are secondary to the company’s reported results. Comparative analysis

Wall Street Analysts Forecast Growth

EDU has been the subject of several recent research reports. JPMorgan Chase & Co. raised their target price on shares of New Oriental Education & Technology Group from $60.00 to $68.00 and gave the stock an “overweight” rating in a report on Wednesday, October 29th. Weiss Ratings restated a “hold (c+)” rating on shares of New Oriental Education & Technology Group in a report on Monday, December 29th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $60.00 target price on shares of New Oriental Education & Technology Group in a research report on Wednesday, October 29th. Finally, Zacks Research raised New Oriental Education & Technology Group from a “strong sell” rating to a “hold” rating in a research note on Monday, December 29th. Three investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $65.30.

Hedge Funds Weigh In On New Oriental Education & Technology Group

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. TD Waterhouse Canada Inc. raised its position in shares of New Oriental Education & Technology Group by 2.5% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 9,108 shares of the company’s stock valued at $485,000 after acquiring an additional 218 shares during the period. Robeco Institutional Asset Management B.V. increased its stake in New Oriental Education & Technology Group by 2.4% in the third quarter. Robeco Institutional Asset Management B.V. now owns 12,922 shares of the company’s stock valued at $686,000 after purchasing an additional 300 shares in the last quarter. KBC Group NV raised its holdings in New Oriental Education & Technology Group by 11.3% in the second quarter. KBC Group NV now owns 4,474 shares of the company’s stock worth $241,000 after purchasing an additional 454 shares during the period. Caitong International Asset Management Co. Ltd boosted its position in shares of New Oriental Education & Technology Group by 7,314.3% during the third quarter. Caitong International Asset Management Co. Ltd now owns 519 shares of the company’s stock worth $28,000 after purchasing an additional 512 shares in the last quarter. Finally, Fox Run Management L.L.C. grew its holdings in shares of New Oriental Education & Technology Group by 5.7% in the 3rd quarter. Fox Run Management L.L.C. now owns 10,548 shares of the company’s stock valued at $560,000 after buying an additional 573 shares during the period.

New Oriental Education & Technology Group Stock Performance

The firm has a market cap of $9.22 billion, a P/E ratio of 25.54, a PEG ratio of 1.31 and a beta of 0.29. The stock’s 50-day moving average is $54.72 and its 200 day moving average is $52.68.

About New Oriental Education & Technology Group

New Oriental Education & Technology Group (NYSE: EDU) is one of China’s leading providers of private educational services, specializing in language training, test preparation and consulting for overseas study. The company’s offerings span a range of subjects, including English language instruction, preparatory courses for examinations such as the TOEFL, GRE and GMAT, and K-12 after-school tutoring. New Oriental’s curriculum is delivered through a combination of in-person learning centers and digital platforms, enabling students across various regions to access its educational resources.

Founded in 1993 by Michael Yu Minhong in Beijing, New Oriental began as a small language school and quickly expanded its footprint.