NEW ORIENTAL EDUCATION & TECHNOLOGY Reports 100.1% Year-over-Year Revenue Increase in Q2 FY2023, But Posts 3.1% Drop in Net Income
January 19, 2023
Earnings report
EDU Stock Intrinsic Value – NEW ORIENTAL EDUCATION & TECHNOLOGY ($NYSE:EDU) is an educational technology and services provider based in Beijing, China. It is one of the leading players in the industry and a constituent of the Hang Seng Index. On January 17 2023, the company reported its financial results for the second quarter of FY2023. Total revenue for the quarter was USD 0.7 million, representing a 100.1% increase from the same period the previous year. This was mainly due to an increase in the number of students enrolled in the company’s online courses and a higher average price for its services.
However, despite the impressive total revenue growth, NET ORIENTAL EDUCATION & TECHNOLOGY also reported a 3.1% decrease in net income for the quarter compared to the preceding year. This was mainly attributed to increased costs related to marketing and product development, as well as higher personnel expenses. Overall, the company’s performance was impressive despite the slight decrease in net income. NEW ORIENTAL EDUCATION & TECHNOLOGY reported strong revenue growth and increased numbers of enrolled students, indicating that its strategy to expand its business is paying off.
In addition, the company’s management is confident that they are on track to deliver positive results in the long run.
Stock Price
On Tuesday, NEW ORIENTAL EDUCATION & TECHNOLOGY (NOET) stock opened at $39.0 and closed at $37.5, plunge by 12.0% from previous closing price of 42.6. This follows the release of the company’s Q2 FY2023 financial results which showed a 100.1% year-over-year revenue increase, but a 3.1% drop in net income. This was attributed to strong growth in both the company’s online and offline businesses, driven by strong demand for its education products and services. This was mainly due to higher operating expenses and taxes, as well as an increase in investment activities. Despite the dip in net income, the company’s overall performance was still impressive, with its total revenue increasing significantly year-over-year.
This is a testament to the success of the company’s strategy of expanding its online and offline businesses, leveraging its strong brand recognition and offering innovative products and services. Overall, investors should remain optimistic about the company’s future prospects given its strong growth in Q2 FY2023. As long as the company continues to invest in its core business and execute on its strategic plans, investors can expect to see further increases in revenue and profitability over the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for EDU. More…
| Total Revenues | Net Income | Net Margin |
| 2.52k | -245.01 | -5.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for EDU. More…
| Operations | Investing | Financing |
| 153.3 | 265.66 | -235.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for EDU. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.02k | 2.28k | 21.81 |
Key Ratios Snapshot
Some of the financial key ratios for EDU are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -10.3% | -17.2% | -8.6% |
| FCF Margin | ROE | ROA |
| 0.1% | -3.7% | -2.3% |
VI Analysis – EDU Stock Intrinsic Value
NEW ORIENTAL EDUCATION & TECHNOLOGY is a company whose fundamentals reflect its long-term potential. VI app has made it easy to analyze the company’s intrinsic value, which is calculated to be around $72.6. This means that the current stock price of $37.5 is undervalued by 48%. This presents an opportunity for investors because the stock is currently trading at a discount, and investors are able to purchase shares at a lower price than its perceived value. The market may not be recognizing the company’s true value, which can provide investors with an attractive entry point. Investors should conduct their own research and analysis of the company before investing, as this will provide a more thorough understanding of the company’s long-term potential and performance. More…
Summary
NEW ORIENTAL EDUCATION & TECHNOLOGY reported strong financial results for the second quarter of FY2023, with total revenue increasing 100.1% year-over-year. Despite this, the company saw a 3.1% decrease in net income over the same period. This caused their stock price to move down on the day of the announcement. When analyzing NEW ORIENTAL EDUCATION & TECHNOLOGY as an investment, it is important to consider the company’s performance over time. It is also important to look at the company’s competitive landscape and potential risks associated with investing in them. A thorough analysis should include examining the company’s financial statements, management team, and strategic plans. NEW ORIENTAL EDUCATION & TECHNOLOGY has a strong reputation in the industry and its financial performance has been solid over the past few years.
The company has a wide range of offerings and is well positioned to benefit from long-term growth in demand for educational services in China. The company is well managed and has a clear strategy for growth. From an investment perspective, NEW ORIENTAL EDUCATION & TECHNOLOGY appears to be a good long-term option. The company has a strong track record of performance and a significant competitive advantage in the industry. The recent dip in net income is a cause for concern, but it is unlikely to have a long-term effect on the company’s prospects.
