New Oriental Reports Strong Revenue Growth in Fiscal Results
New Oriental's Financial Results Overview
New Oriental Education & Technology Group Inc. (NYSE: EDU), a leading provider of private educational services, has announced its impressive unaudited financial results for its second fiscal quarter. The company reported a remarkable 19.4% increase in total net revenues, reaching approximately US$1,038.6 million. When excluding the revenues generated from East Buy's private label products and livestreaming business, the net revenues showcased even stronger growth, marking a 31.3% increase, amounting to US$894.2 million.
Key Financial Highlights
During the second fiscal quarter, New Oriental faced some challenges, reflected in its operating income, which showed a year-over-year decline of 9.8% to US$19.3 million. However, the operating income excluding losses from East Buy's private label products and livestreaming improved significantly by 102.5% to US$25.0 million. Net income attributable to New Oriental increased by 6.2% year-over-year, amounting to US$31.9 million for the quarter.
Operating Highlights
Michael Yu, the Executive Chairman, expressed enthusiasm about the company's growth trajectory, particularly noting the significant contributions from test preparation and overseas study consulting services. These segments reported growth rates of approximately 21.1% and 31.0%, respectively. New initiatives in education have also been fruitful, with non-academic tutoring courses boosting enrollment numbers to around 994,000 students.
Potential Future Growth
Chenggang Zhou, the CEO, elaborated on the company's strategy for capacity expansion to support revenue growth while enhancing operational efficiency. New Oriental's East Buy has expanded its product offerings, and its multi-platform approach aims to reach a broad customer base. The upcoming fiscal outlook suggests total net revenues, excluding certain business segments, are anticipated to range between US$1,007.3 million and US$1,032.5 million, reflecting a year-over-year increase of 18% to 21%.
Academic Performance Metrics
The academic performance of New Oriental is showcased by the significant number of student enrollments, reaching nearly 994,000 for non-academic tutoring courses offered in around 60 cities. The intelligent learning systems in use have seen adoption by roughly 261,000 active paid users. These figures illustrate the company's commitment to enriching educational experiences through innovative technology.
Future Prospects and Shareholder Confidence
Looking ahead, New Oriental aims to maintain its growth momentum while focusing on improving profitability. The board of directors recently approved a significant share repurchase program worth US$700 million. This decision reflects the company’s confidence in its long-term value creation and dedication to enhancing shareholder returns.
Frequently Asked Questions
What were New Oriental's total net revenues in the recent quarter?
New Oriental reported total net revenues of approximately US$1,038.6 million for the second fiscal quarter.
How did operating income change compared to the previous year?
Operating income declined by 9.8% year over year, totaling US$19.3 million.
What growth did the overseas study consulting segment experience?
The overseas study consulting business saw an increase of approximately 31.0% year over year.
How many students were enrolled in New Oriental's non-academic tutoring courses?
Approximately 994,000 students were enrolled in the non-academic tutoring courses offered by New Oriental.
What is the expected revenue range for the upcoming quarter?
The projected revenue for the next quarter is expected to be between US$1,007.3 million and US$1,032.5 million.
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