New Oriental Education (EDU) Stock Surges on Q4 Results
NEW YORK (TheStreet) -- Shares of New Oriental Education & Technology (EDU) - Get Report are up 6.58% to $44.53 on heavy trading volume early Wednesday afternoon after reporting better than expected 2016 fiscal fourth quarter results.
Earlier today the largest provider of private educational services in China reported earnings of 29 cents per share, topping analysts' projections by a penny.
Revenue for the period was $394.9 million, beating Wall Street's estimates of $389.7 million.
"Our very strong results for fiscal 2016 are essentially a positive manifestation of our ongoing "Optimize the Market" strategy and proof that our strategic growth initiatives are working," Michael Yu, CEO of New Oriental, said in the announcement.
The educational services company, which provides English language and test preparation classes, reported a 32.5% enrollment increase to 1.04 million.
About 2.68 million of the company's shares changed hands so far today vs. its average 30-day volume of 1.55 million shares per day.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate NEW ORIENTAL ED & TECH as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: EDU
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