China's New Oriental posts upbeat quarterly revenue, shares surge
Shares of New Oriental Education & Technology Group Inc. (New Oriental), a leading provider of private educational services in China, soared on Tuesday after the company reported quarterly revenue and next-quarter guidance that topped analysts' expectations.
Total net revenue increased 20.2 percent year over year to 842.9 million U.S. dollars for the fourth fiscal quarter of 2019, the company said in a statement on Tuesday. Wall Street had expected its revenue to climb 19 percent to 831 million dollars, according to Yahoo Finance.
Meanwhile, the company expects total net revenue in the first quarter of the fiscal year 2020 (June 1, 2019 to Aug. 31, 2019) to be in the range of 1.0505 billion to 1.0755 billion U.S. dollars, representing year-over-year growth in the range of 22 percent to 25 percent. Analysts had forecast the revenue outlook of 1.05 billion dollars.
"We are delighted to conclude the fiscal year 2019 with continued robust growth on the top line as well as improvement in operating margin," Yu Minhong, New Oriental's executive chairman, said in the statement.
"Looking ahead, we will remain focused on enhancing the quality and standards of our educational products and services, and strive to deliver maximum value to our students," he added.
The stock surged shortly after the release of the quarterly results to finish 9.19 percent higher at 107.32 U.S. dollars apiece Tuesday.
U.S.-listed Chinese companies have reported solid gains so far this year.
As of Monday, the S&P U.S. Listed China 50 index stood at 2,719.45, marking an 18.69-percent increase for the year-to-date returns.