Oppenheimer Positive On ChinaEdu (CEDC)

Oppenheimer & Co. is out with a research report on ChinaEdu Corporation (ADR) CEDU after the Chinese education company reported better than expected earnings. It has a Perform rating on shares. In a note sent to clients, Oppenheimer writes, "CEDU's 3Q EPS of $0.10 exceeded our estimate of $0.07, with strength across the board. Revenue of $15.1M (+14.9% y/y) was above our $14.4M est and the guidance range of $14.2-14.6M; GAAP operating margin of 24.7% also exceeded our 22% est, both mainly driven by better than expected performance at its Anqing School's new campus. Separately, the company also announced the resignation of its CFO, Lily Liu. Our brief discussion with Ms. Liu indicates this is solely for personal reasons. We do not anticipate major operational disruptions as when her predecessor resigned in 2008." Share of CEDU gained 24 cents yesterday to close at $7.59.