Earnings Preview: New Oriental Education Reports Quarterly Results Tuesday

Oct.13.11 | About: New Oriental (EDU)

New Oriental Education (NYSE:EDU) is due to report earnings before the opening bell on October 18, 2011.


EDU trades an average of 2.3 million shares per day.

New Oriental Education and Technology Group Inc. provides private educational services primarily in China. The company was founded in 1993 and is headquartered in Beijing, China.

52 Week High: $34.77
52 Week Low: $20.61
Book Value: $3.75
Float Short: 1.67%

Analysts are expecting an improvement of $0.47 in earnings per share compared to last quarter's results of $0.10. A beat of $0.57 per share, will top the estimated mean earnings.

The P/E ratio has trended lower, as the current trailing twelve months (ttm) P/E ratio is 59.1, while the forward P/E ratio is now 11.9. It appears based on the lower PE that investors are pricing in less growth. Looking at the price movement over the last month, the stock has fallen in price -9.13%, with a one year change of 29.78%. Compared to the S&P 500, the year to date difference is 18.24%.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $386.31 million for 2010 vs. $292.57 million for 2009. The bottom line has rising earnings year-over-year of $77.79 million for 2010 vs. $61.02 million for 2009. The company's earnings before income and taxes are rising with an EBIT year-over-year of $77.31 million for 2010 vs. $60.92 million for 2009.

paid2trade.com revenue gross bar chart for EDU Click to enlarge

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
May-11 $ 119.89 M $ 137.39 M $ 17.50 M 14.6%
Feb-11 $ 122.09 M $ 132.52 M $ 10.43 M 8.54%
Nov-10 $ 84.72 M $ 84.50 M $ -0.22 M -0.26%
Aug-10 $ 195.38 M $ 192.31 M $ -3.07 M -1.57%
May-10 $ 80.46 M $ 86.58 M $ 6.12 M 7.61%
Click to enlarge
M = millions, B = billions

Differences are rounded. (Some one-time items are often excluded in reported EPS.)
Click to enlarge
Reported earnings per share compared to the mean estimate. Differences are rounded.
Click to enlarge

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