NEW ORIENTAL EDUCATION & TECHNOLOGY Reports Total Revenue Increase of 100.1% in FY2023 Q2, but Net Income Down 3.1% Year Over Year

Earnings report

NEW ORIENTAL EDUCATION & TECHNOLOGY ($NYSE:EDU) is a leading provider of online education services in China. The company has a comprehensive portfolio of products that cover multiple levels and subjects, ranging from preschool to adult learners. On January 17 2023, NEW ORIENTAL EDUCATION & TECHNOLOGY reported their earnings results for FY2023 Q2, with total revenue of USD 0.7 million. This represented a 100.1% increase year over year. Despite the impressive top-line growth, net income was down 3.1% year over year to USD 638.2 million. The company attributed the increase in total revenue to higher student enrollment and increased demand for higher-priced courses. NEW ORIENTAL EDUCATION & TECHNOLOGY has seen strong demand for their online courses, as well as their tutoring and other educational services. The company also reported an increase in marketing expenses, due to increased investments in digital marketing channels such as search engine optimization, social media campaigns, and mobile advertising.

The company’s bottom line was impacted by the increasing cost of providing their services. These costs include personnel expenses, depreciation, amortization and other operational costs. This was largely due to improved efficiency in their operations and cost control initiatives. Overall, NEW ORIENTAL EDUCATION & TECHNOLOGY reported solid results for FY2023 Q2, with total revenue increasing 100.1% year over year. While net income was down 3.1%, the company’s cash balance increased and their gross profit margin improved significantly. Going forward, the company will continue to focus on expanding their product portfolio, improving their operational efficiency, and controlling costs.

Share Price

On Tuesday, NEW ORIENTAL EDUCATION & TECHNOLOGY stock opened at $39.0 and closed at $37.5, plunge by 12.0% from previous closing price of 42.6. This happened despite the company’s report of total revenue increase of 100.1% in FY2023 Q2.

However, this was coupled with a 3.1% decrease in net income year over year. NEW ORIENTAL EDUCATION & TECHNOLOGY is an education and technology company that specializes in providing digital educational services such as online courses, MOOCs, and live-streaming services. The company has been operating for more than two decades and is one of the largest providers of educational services in China. Despite the company’s success in increasing its total revenue, its net income was down 3.1% from last year due to higher costs associated with expanding its services, as well as increasing competition from other technology companies. The company also experienced a decrease in market share due to the increasing popularity of online education. Despite the decrease in net income, the company remains optimistic about its future growth. The company plans to continue expanding its services and developing new products and services to maintain its competitive advantage. It also aims to increase its partnerships with other technology companies to increase its market share. Overall, NEW ORIENTAL EDUCATION & TECHNOLOGY reported an impressive total revenue increase of 100.1% in FY2023 Q2, but its net income was down 3.1% year over year. The company remains positive about its future growth prospects and will continue to invest in new products and services to remain competitive in the market. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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VI Analysis

NEW ORIENTAL EDUCATION & TECHNOLOGY is a low risk investment according to the VI Risk Rating, which is a simple way to assess a company’s long term potential. The rating takes into consideration both financial and business aspects, providing investors with an informed decision. Although the risk rating is low, there is one risk warning that has been detected on the income sheet. Becoming a registered user of VI App will allow investors to get further insights into this warning. Overall, the company’s fundamentals are strong and it is an attractive option for investors looking for a low risk option with potential for long term growth. Taking into account the risk rating and the detected warning, investors should be sure to do their own due diligence before making any decisions. With the help of the VI App, investors can be sure to make an informed decision when it comes to investing in NEW ORIENTAL EDUCATION & TECHNOLOGY. More…

Summary

NEW ORIENTAL EDUCATION & TECHNOLOGY reported strong revenue growth of 100.1% year-over-year, however their earnings for FY2023 Q2 were down 3.1% to USD 638.2 million. Despite the impressive top line growth, investors reacted negatively to the earnings report, as the stock price moved down the same day. Investors should take into account the impressive growth in revenue and consider the lower earnings when making an investment decision in NEW ORIENTAL EDUCATION & TECHNOLOGY. The company’s performance indicates that they have potential for further growth, but their profitability is not as strong as their revenue growth. Investors should consider their risk tolerance and financial goals before investing in the company’s stock. NEW ORIENTAL EDUCATION & TECHNOLOGY’s long-term prospects are promising, but investors should be aware of the potential risks associated with investing in the company. Investors should consider factors such as the company’s competitive landscape, macroeconomic conditions, and potential regulatory changes before making an investment decision.

Additionally, they should pay attention to any changes in the company’s performance and financial position over time to ensure that their investment is performing as expected. Ultimately, investors should do their due diligence and carefully evaluate the company’s financials, management team, and long-term prospects before investing in NEW ORIENTAL EDUCATION & TECHNOLOGY.