Why New Oriental Education & Technology (EDU) Stock Is Falling Today

NEW YORK (TheStreet) -- New Oriental Education & Technology (EDU) was falling -13.6% to $20.90 Tuesday after guiding below analysts' expectations for the fiscal first quarter, and despite beating expectations for the fourth quarter.

For the fourth quarter New Oriental Education & Technology reported earnings of 30 cents a share, beating the Capital IQ Consensus Estimate of 28 cents a share by 2 cents. Revenue grew 20% year-over-year to $287.5 million, beating analysts' estimates of $281.56 million for the quarter.

Looking forward to the first quarter, the company said it expects revenue of $412 million to $427.5 million, below analysts' estimates of $463.36 million.

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TheStreet Ratings team rates NEW ORIENTAL ED & TECH as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NEW ORIENTAL ED & TECH (EDU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, notable return on equity, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

EDU ChartEDU data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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