- New Oriental Education & Technology ( NYSE: EDU ) Q2 total net revenues decreased by 56.8% Y/Y to $524M.
- The decline was mainly due to the cessation of K-9 academic after-school tutoring services in compliance with the government policies in China.
- Operating loss was $105.6M vs. $102.4M prior.
- Net operating cash flow was ~$29.3M vs. $22.3M
- Total number of schools and learning centers was 744 as of May 31, 2022, a decrease of 103 and 925 compared to 847 as of February 28, 2022 and 1,669 as of May 31, 2021.
- "In this fiscal year, the overseas test preparation and overseas study consulting businesses increased by 6% and 16% year over year, respectively. Our domestic test preparation business targeting adults and university students witnessed a record rapid growth of approximately 30% year over year. At the same time, various new businesses that we embarked on earlier this year achieved promising results." said executive chairman Michael Yu.
- Board of directors authorized the repurchase of up to $400M shares during the period from July 28, 2022 through May 31, 2023.
- Stock has a sell-side rating of Buy with 4.28 score and has an average price target of $24.38.
- A comparative price rating of the stock vs. its peers.
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New Oriental Education & Technology surges 8% post Q2 results and authorizes $400M buyback