- New Oriental Education & Technology Group Inc (NYSE:EDU) shares are up Wednesday premarket following Street-beating third-quarter results and robust fourth-quarter topline guidance.
- EDU reported third-quarter FY23 sales growth of 22.8% year-on-year to $754.15 million, beating the consensus of $718.40 million.
- Operating costs and expenses decreased 9% Y/Y to $687.7 million.
- Operating margin for the quarter was 8.8%, compared to (23.0)% in the same period of the prior fiscal year. Operating income for the quarter was $66.5 million.
- The company held $1.3 billion in cash and equivalents as of Feb. 28, 2023. Net cash provided by operating activities for the three months totaled $190.5 million for Q3.
- The total number of schools and learning centers was 712 as of Feb. 28, 2023, 15.9% decrease Y/Y.
- Adjusted earnings per ADS of $0.56 beat the analyst consensus of $0.33.
- As of Apr. 18, 2023, the company repurchased an aggregate of approximately 5.1 million ADSs for about $157.6 million from the open market.
- Outlook: New Oriental sees Q4 total net revenues of $801.8 million – $822.7 million (consensus $661.67 million), a 53% – 57% increase Y/Y.
- Price Action: EDU shares are trading higher by 6.18% at $41.60 in premarket on the last check Wednesday.
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