Why New Oriental Education & Technology Group Stock Is Getting Hammered

New Oriental Education & Technology Group EDU shares are trading lower by some 12.08% to $37.47 Tuesday following mixed second-quarter results.

New Oriental Education reported second-quarter EPS of 10 cents, which missed the analyst consensus estimate of 12 cents. The company reported sales of $638.20M, beating the $612.76M estimate.

The stock may also be lower Tuesday in sympathy with the broader Chinese market.

What's Happening In China?

Our Benzinga team reported, for 2022, the world’s second-largest economy recorded 3% growth in real terms, with output coming at $121.02 trillion yuan ($17.93 billion).

NBS noted that the economy continued to grow despite downward pressures and output hit a new high, and employment and prices remained stable.

The 3% growth trailed China’s official target of 5.5% growth for the year and marked a significant slowdown from the 8.1% rate recorded for 2021.

The annual rate of growth was the slowest since 2020 when GDP growth plunged to 2.2% amid the initial COVID-19 onset. Outside of 2020, the 2022 GDP growth was the slowest since 1976, a year that marked the end of the Cultural revolution, according to World Bank data...Read More

See Also: China's Pandemic Pain, Apple 'Surprise' Rumors, Summers Backing Of IRS And More: 5 Key Stories You May Have Missed From The Weekend

According to data from Benzinga Pro, New Oriental Education has a 52-week high of $43.38 and a 52-week low of $8.40.