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Tag: EDU Stock

  • New Oriental (EDU) Stock: Bullish After Quarterly Results

    New Oriental (EDU) Stock: Bullish After Quarterly Results

    The stock performance of New Oriental Education & Technology Group Inc. (NYSE: EDU) has been trending upward on US stock charts. New Oriental’s stock showed a notable rise of 3.18% as of the last check, closing at $74.28. The company’s financial figures were released today raising investor sentiment that resulted in the EDU stock surge.

    New Oriental (EDU) released its unaudited financial figures for its fiscal second quarter 2024 ended on November 30, 2023. Remarkably, New Oriental outperformed forecasts for the second quarter, exhibiting a strong year-over-year increase in sales of 36.3% along with a corresponding improvement in the operating margin.

    The company’s international study consulting and abroad test preparation divisions maintained strong development, with yearly growth rates of around 31.7% and 46.5%, respectively. Furthermore, the domestic test preparation business catering to adults and university students achieved a substantial growth of approximately 42.7% year over year.

    Notably, New Oriental’s new educational business initiatives demonstrated promising results, registering a remarkable 68.3% revenue growth year over year in this fiscal quarter. Within these educational initiatives, New Oriental’s non-academic tutoring courses were made available in around 60 cities, attracting approximately 786,000 student enrollments in the current fiscal quarter.

    Concurrently, the company’s intelligent learning system and devices found adoption in around 60 cities, garnering approximately 181,000 active paid users in the same fiscal quarter. This robust growth can be attributed to heightened student satisfaction, a direct outcome of EDU’s continuous efforts to improve customer retention rates and enhance the quality of its product offerings and services.

    With its strong brand and abundance of educational resources, New Oriental is now certain of its ability to take advantage of profitable market prospects. Against its previously authorized US$400 million share repurchase program, As of January 23, 2024, New Oriental has effectively repurchased around 6.0 million ADSs from the open market for a total estimated value of US$194.2 million.

  • New Oriental Education & Technology Group Inc. (EDU) Stock: What Has Been Affecting It Premarket?

    Shares of New Oriental Education & Technology Group Inc. (EDU) fell -24.23% to $2.22 in premarket trade at last check. The New Oriental stock closed Friday session at $2.93, down -54.22%. There were 806.73 million shares of EDU stock exchanged on the day, a volume which was greater than the average daily volume of 56.9 million shares for the past 50 days. Following China’s introduction of new education regulations, the price of EDU has plummeted.

    What are those new rules?

    Among China’s largest providers of private education services, New Oriental offers a range of educational programs, services, and products to students throughout the country. Educational programs, services, and products that EDU stock provides are: after-school tutoring, test prep, foreign language classes for adults, pre-school education, elementary and secondary education, education materials and distribution, online education, and more.

    China’s official state media, which includes the Xinhua News Agency and China Central Television, announced on July 24, 2021, a new policy to help alleviate the burden of homework and after-school tutoring on compulsory education students (the “Opinion”), announced EDU stock in a press release. The CPC Central Committee General Office and the State Council General Office issued the Opinion.

    In this Opinion, high-level policy directives are set out regarding requirements and limitations related to tutoring programs after school.

    • Academic AST Institutions, which provide tutoring services to students after school in China’s compulsory education system, will have to be registered as non-profits, and will not be given approval for any new Academic AST Institutions;
    • Foreign ownership is not permitted in Academic and Scientific Research Institutions, including contractual arrangements, and those currently possessed by foreign entities must repudiate their ownerships;
    • Companies listed on the stock exchange are prohibited from raising capital to invest in businesses that teach academic subject matter in the compulsory education system;
    • AST Institutions are forbidden to provide tutoring services in compulsory education during public holidays, weekends, and holidays; and
    • Academic AST Institutions need to follow fees standards that have been established by the relevant authorities.

    Also provided in the Opinion is the requirement that organizations providing tutoring services to high school students on academic subjects (that is, those outside of China’s compulsory education system) should take the Opinion into account when conducting their activities.

    How EDU stock will be facing it?

    As part of providing educational services, New Oriental (EDU) decided that it will adhere to the Opinion and relevant regulatory requirements. Tutoring services related to academic subjects in China’s compulsory education system will be materially adversely affected by any such compliance measures being taken by EDU stock. When it comes to complying with the Opinion and any related rules and regulations, EDU will actively seek guidance from and cooperate with government authorities.