NEW ORIENTAL EDUCATION & TECHNOLOGY Reports Fourth Quarter FY2023 Earnings Results
August 21, 2023
🌥️Earnings Overview
For the fourth quarter of FY2023, NEW ORIENTAL EDUCATION & TECHNOLOGY ($NYSE:EDU) reported total revenue of USD 860.6 million, representing an increase of 64.2% from the same period in the prior year. Net income also rose significantly, increasing 115.3%, to USD 29.0 million from the same quarter the year before.
Market Price
On Wednesday, the stock opened at $48.1 and closed at $51.5, indicating a growth of 3.3% from the previous closing price of $49.9. The company proved to be resilient and displayed strong financial results despite macroeconomic challenges posed by the current pandemic. This marks the company’s third consecutive quarter of annualized revenue growth and the sixth consecutive quarter of year-over-year operating income growth.
The company was able to leverage its leading educational technology capabilities to continue providing quality access to education opportunities for students across the globe. The company’s strong performance in such uncertain times has led to an increase in investor confidence in its future prospects, as shown by its stock market performance. 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 |
| 3k | 177.34 | 5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for EDU. More…
| Operations | Investing | Financing |
| 971.01 | -37.41 | -246.87 |
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 |
| 6.39k | 2.58k | 21.21 |
Key Ratios Snapshot
Some of the financial key ratios for EDU are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.7% | -21.9% | 6.3% |
| FCF Margin | ROE | ROA |
| 32.4% | 3.2% | 1.9% |
Analysis
After conducting a financial analysis of NEW ORIENTAL EDUCATION & TECHNOLOGY, GoodWhale has deemed the company to have a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable of meeting current debt obligations and funding future operations. Further analysis reveals that NEW ORIENTAL EDUCATION & TECHNOLOGY is strong in asset, medium in profitability and weak in dividend, growth. According to our Star Chart classification, we deem it to be an ‘elephant’ company, meaning it is rich in assets after deducting off liabilities. Investors interested in this type of company may look to capitalize on the strong asset position, while being mindful of lower growth and dividend yields than other companies. Additionally, they should be aware that this company has only medium profitability, so further due diligence should be conducted before making any investments. More…
Summary
NEW ORIENTAL EDUCATION & TECHNOLOGY had a strong fourth quarter, with total revenue increasing 64.2% from the same quarter in the prior year and net income increasing 115.3%. This resulted in a positive response from investors, as the stock price moved up the same day. In addition, the company’s strong balance sheet and cash-generating capabilities bode well for investors. With all these factors in mind, NEW ORIENTAL EDUCATION & TECHNOLOGY appears to be a promising investment opportunity.
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