Shares of Chinese educational services provider New Oriental Education (NYSE:EDU) are slipping today, even after the company posted better-than-expected third-quarter numbers.
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Revenue rose 22.8% year-over-year to $754.15 million, outperforming estimates by $38.6 million. Earnings per ADS (American Depository Share) at $0.56 too surpassed expectations by $0.43. During the quarter, the company saw growth in overseas test preparation and overseas study consulting verticals. Additionally, its new business initiatives continue to witness strong momentum.
The company’s total number of schools and learning centers tally was 712 at the end of the quarter. Looking ahead, for the fourth quarter, New Oriental expects net revenue to hover between $801.8 million and $822.7 million. This points to a year-over-year growth between 53% and 57%.
Today’s price gains come on top of a 5.8% rise in the share price over the past five sessions. At the same time, short interest in the stock is hovering at present at about 3.9%.
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