New Oriental Education & Technology Group (EDU, Financial) has reported its third-quarter revenue at $1.18 billion, falling short of the expected $1.24 billion. Despite this miss, the company experienced significant growth in various segments, indicating a positive trend in business operations.
Excluding contributions from East Buy's private label products and its livestreaming operations, New Oriental saw a 21.2% year-over-year increase in total net revenues. Revenues from overseas test preparation services rose by 7.1%, while the overseas study consulting division experienced a notable 21.4% growth compared to the previous year. Additionally, their domestic test preparation business for adults and university students recorded a 17.0% increase year-over-year.
New Oriental's new educational business initiatives have demonstrated remarkable growth, with revenues increasing by 34.5% compared to the same period last year. These initiatives include non-academic tutoring courses available in approximately 60 cities, engaging about 408,000 students this quarter. The company's intelligent learning systems and devices also garnered around 309,000 active paying users in 60 cities.
The company remains committed to long-term sustainable development, focusing on enhancing product quality and operational efficiency to ensure future growth and profitability.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for New Oriental Education & Technology Group Inc (EDU, Financial) is $67.36 with a high estimate of $99.41 and a low estimate of $41.00. The average target implies an upside of 51.75% from the current price of $44.39. More detailed estimate data can be found on the New Oriental Education & Technology Group Inc (EDU) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, New Oriental Education & Technology Group Inc's (EDU, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for New Oriental Education & Technology Group Inc (EDU, Financial) in one year is $90.52, suggesting a upside of 103.92% from the current price of $44.39. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the New Oriental Education & Technology Group Inc (EDU) Summary page.
