New Oriental Education Earnings Preview

New Oriental Education EDU is preparing to release its quarterly earnings on Wednesday, 2025-04-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect New Oriental Education to report an earnings per share (EPS) of $0.75.

The market awaits New Oriental Education's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

The company's EPS missed by $0.08 in the last quarter, leading to a 1.24% drop in the share price on the following day.

Here's a look at New Oriental Education's past performance and the resulting price change:

Market Performance of New Oriental Education's Stock

Shares of New Oriental Education were trading at $44.47 as of April 21. Over the last 52-week period, shares are down 42.96%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Views on New Oriental Education

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on New Oriental Education.

The consensus rating for New Oriental Education is Neutral, based on 5 analyst ratings. With an average one-year price target of $48.8, there's a potential 9.74% upside.

Peer Ratings Overview

The below comparison of the analyst ratings and average 1-year price targets of and Bright Horizons Family, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for and Bright Horizons Family, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

New Oriental Education ranks at the bottom for Revenue Growth among its peers, with the lowest growth rate. It also has the lowest Gross Profit margin, indicating lower profitability compared to its peers. However, New Oriental Education has a higher Return on Equity than its peers, suggesting better efficiency in generating profits relative to its equity. Overall, New Oriental Education is positioned differently across the metrics compared to its peers.

Get to Know New Oriental Education Better

New Oriental is a prominent private education provider in China, offering a wide array of educational services. These include overseas test preparation, consulting services, high school academic tutoring, nonacademic tutoring, and intelligent learning systems and devices. Additionally, the company holds a 57% ownership stake in East Buy, a leading player in the livestreaming e-commerce market.

New Oriental Education: Financial Performance Dissected

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: New Oriental Education's revenue growth over a period of 3 months has been noteworthy. As of 30 November, 2024, the company achieved a revenue growth rate of approximately 19.44%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 3.07%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): New Oriental Education's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.83%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): New Oriental Education's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.42%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: New Oriental Education's debt-to-equity ratio is below the industry average at 0.2, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for New Oriental Education visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.