In the third quarter of 2024, New Oriental Education & Technology Group (NYSE: EDU) reported strong financial performance. Revenue increased by a remarkable 60% from the same period in 2023, reaching US$1.21 billion. Net income also rose by 6.8% to US$87.2 million, although the profit margin decreased from 11% in 3Q 2023 to 7.2% in the current quarter due to higher expenses. Earnings per share (EPS) increased to US$0.53 from US$0.49 in the previous year.
Although New Oriental Education & Technology Group’s revenue surpassed analyst expectations by 11%, its EPS fell short by the same percentage. Despite this, analysts forecast that the company will achieve an average annual revenue growth of 17% over the next three years, which is more than double the expected growth rate for the Consumer Services industry in the US.
While New Oriental Education & Technology Group’s financial results were positive, its shares experienced a slight decline of 2.0% from the previous week.
A balance sheet analysis is crucial for assessing a company’s overall financial health and should be examined alongside its profit and loss statement. For those interested in conducting a comprehensive valuation analysis of New Oriental Education & Technology Group, including fair value estimates, risks, dividends, insider transactions, and financial health data are available through Simply Wall St.
It’s important to note that this content is not intended as financial advice and should not consider individual objectives or financial situations.
In conclusion, despite its impressive third-quarter financial performance, New Oriental Education & Technology Group still faces challenges ahead. To better understand these challenges and potential opportunities for growth, investors may want to conduct further research on their own or seek advice from a financial advisor before making any investment decisions.