The stock performance of New Oriental Education & Technology Group Inc. (NYSE: EDU) has been trending upward on US stock charts. New Oriental’s stock showed a notable rise of 3.18% as of the last check, closing at $74.28. The company’s financial figures were released today raising investor sentiment that resulted in the EDU stock surge.
New Oriental (EDU) released its unaudited financial figures for its fiscal second quarter 2024 ended on November 30, 2023. Remarkably, New Oriental outperformed forecasts for the second quarter, exhibiting a strong year-over-year increase in sales of 36.3% along with a corresponding improvement in the operating margin.
The company’s international study consulting and abroad test preparation divisions maintained strong development, with yearly growth rates of around 31.7% and 46.5%, respectively. Furthermore, the domestic test preparation business catering to adults and university students achieved a substantial growth of approximately 42.7% year over year.
Notably, New Oriental’s new educational business initiatives demonstrated promising results, registering a remarkable 68.3% revenue growth year over year in this fiscal quarter. Within these educational initiatives, New Oriental’s non-academic tutoring courses were made available in around 60 cities, attracting approximately 786,000 student enrollments in the current fiscal quarter.
Concurrently, the company’s intelligent learning system and devices found adoption in around 60 cities, garnering approximately 181,000 active paid users in the same fiscal quarter. This robust growth can be attributed to heightened student satisfaction, a direct outcome of EDU’s continuous efforts to improve customer retention rates and enhance the quality of its product offerings and services.
With its strong brand and abundance of educational resources, New Oriental is now certain of its ability to take advantage of profitable market prospects. Against its previously authorized US$400 million share repurchase program, As of January 23, 2024, New Oriental has effectively repurchased around 6.0 million ADSs from the open market for a total estimated value of US$194.2 million.
