Earnings Preview: New Oriental Education To Report Results

| About: New Oriental (EDU)
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New Oriental Education and Tech Group (NYSE:EDU) is anticipated to report earnings before the opening bell on January 17, 2012.

New Oriental Education and Technology Group provides private educational services primarily in China. The company was founded in 1993 and is headquartered in Beijing, China. EDU trades an average of 1.1 million shares per day.

52 Week High: $34.77

52 Week Low: $20.61

Book Value: $4.43

Float Short: 2.73%

On average, analysts are expecting a drop of $-0.56 in earnings per share compared to last quarter's results of $0.58. The estimated mean earnings are $0.02 per share.

The current trailing twelve months (NYSE:TTM) P/E ratio is 28.5. The forward P/E ratio is 26.59.

I am bearish in general for all Chinese stocks. I don't believe the checks and balances for the accounting of Chinese stocks are adequate to protect investors.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $557.87 million for 2011 vs. $386.31 million for 2010. The bottom line has rising earnings year-over-year of $101.77 million for 2011 vs. $77.79 million for 2010.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $95.50 million for 2011 vs. $77.31 million for 2010. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue.

paid2trade.com revenue gross bar chart for EDU

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

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Aug-11 $ 263.83 M $ 271.98 M $ 8.15 M 3.09%
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%

M = millions, B = billions

Differences are rounded. (Some one0time items are often excluded in reported EPS.)

paid2trade.com Quarterly Estimates And Actual EPS results EDU

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for EDU.

paid2trade.com short interest tool. The total short interest number of shares for EDU

The number of days to cover short interest based on average daily trading volume for EDU.

paid2trade.com number of days to cover short interest based on average daily trading volume for EDU

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I use a proprietary blend of technical analysis, financial crowd behavior and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.