Stock of the Day

January 7, 2022

New Oriental Education & Technology Group (EDU)

$58.76
+$1.06 (+1.8%)
Market Cap: $9.29B

About New Oriental Education & Technology Group

New Oriental Education & Technology Group, Inc. is a holding company, which engages in the provision of private educational services. It operates through the following segments: Educational Services and Test Preparation Courses, Private Label Products and Livestreaming E-Commerce, Overseas Study Consulting Services, and Educational Materials and Distribution. The company was founded by Min Hong Yu and Yong Qiang Qian on November 16, 1993, and is headquartered in Beijing, China.

Today's Trend

New Oriental Education & Technology Group, Inc. (NYSE: EDU) shares moved higher as investors focused on the company’s new capital-return plan, better-than-expected revenue and upbeat fiscal 2027 outlook, despite a quarterly earnings miss.

  • New Oriental unveiled a new capital-return plan, strengthening the investment case by signaling that management intends to return more cash to shareholders. The announcement was the primary catalyst behind the stock’s advance. New Oriental Education & Technology Group Is Up After New Capital Return Plan Unveiled
  • Fiscal fourth-quarter revenue reached $1.53 billion, exceeding the $1.46 billion analyst consensus. The company also forecast fiscal 2027 revenue of $6.5 billion to $6.7 billion, above the roughly $6.3 billion consensus estimate, indicating continued growth expectations. New Oriental Fiscal Q4 Earnings Snapshot
  • Management highlighted artificial-intelligence initiatives and growth opportunities, while commentary on financial performance and shareholder returns supported a more favorable view of the company’s longer-term prospects. New Oriental Earnings Call Highlights AI Growth, Returns
  • Analysts and investors are reassessing EDU’s valuation after the earnings release, with the combination of above-consensus revenue, forward guidance and capital returns improving the company’s undervalued-growth narrative. New Oriental Earnings and Guidance Test Its Undervalued Case
  • Quarterly EPS was $0.60, below the $0.66 consensus estimate by $0.06. The earnings shortfall and net margin of 7.82% remain key risks, although the revenue beat and stronger guidance appear to have outweighed them. New Oriental Quarterly Earnings Report