New Oriental Education & Technology Group Impresses with Financial Growth, but EPS Misses Analyst Expectations

New Oriental Education & Technology Group (NYSE: EDU) reported its third-quarter results for 2024, showcasing impressive growth in key financial metrics. Revenue increased by a whopping 60% from the same quarter in 2023, reaching US$1.21 billion. Net income also rose by 6.8%, reaching US$87.2 million, although the profit margin decreased from 11% in 3Q 2023 to 7.2% in the current quarter due to higher expenses. Earnings per share (EPS) increased to US$0.53 from US$0.49 in the previous year.

Despite the positive financial results, the company’s shares experienced a slight decline of 2.0% from the previous week. To gain a deeper understanding of New Oriental Education & Technology Group’s financial health, it is recommended to examine its balance sheet in conjunction with its profit and loss statement.

Looking ahead, New Oriental Education & Technology Group is forecasted to achieve an average annual revenue growth of 17% over the next three years, outpacing the 11% growth forecast for the Consumer Services industry in the US. However, earnings per share (EPS) fell short of analyst estimates by 11%. Despite this setback, investors should remain optimistic about New Oriental’s long-term prospects.

For those interested in conducting a comprehensive valuation analysis of New Oriental Education & Technology Group, including fair value estimates, risks, dividends, insider transactions, and financial health, Simply Wall St provides unbiased commentary based on historical data and analyst forecasts.

It’s important to note that this content is not intended as financial advice and does not consider individual objectives or financial situations.

New Oriental Education & Technology Group’s strong third-quarter performance has put it on track for an impressive year overall. With revenue up by more than half from last year and earnings per share increasing significantly as well, investors should be bullish about this company’s future prospects.

However, there are some concerns that need to be addressed before we can fully evaluate New Oriental’s financial position. For example, while revenue growth was strong in Q3 compared to Q3 of last year, earnings per share fell short of analyst expectations by almost $0