- New Oriental Education & Technology Group Inc (NYSE:EDU) reported a fourth-quarter FY22 sales decline of 56.8% year-on-year, to $524 million.
- The decline was mainly due to the cessation of K-9 academic after-school tutoring services in compliance with the government policies in China.
- Non-GAAP operating costs and expenses decreased 53.6% Y/Y to $600.9 million.
- The operating loss for the quarter was $(105.6) million versus a loss of $(102.4) million last year.
- The company held $1.1 billion in cash and equivalents as of May 31, 2022. Cash provided by operating activities for the quarter totaled $29.3 million versus $318.4 million a year earlier.
- Non-GAAP loss per ADS was $(0.94) versus $(0.16) a year earlier.
- On July 26, 2022, the board of directors authorized the repurchase of up to $400 million of common shares through May 31, 2023.
- The company’s cash and equivalents totaled approximately $4.2 billion as of May 31, 2022.
- Outlook: Oriental sees Q1 sales of $641.3 million – $680.6 million, representing a year-over-year decline of 51% – 48%.
- Stephen Zhihui Yang, New Oriental’s CFO, commented, “The Company’s management team will continue to make great efforts to resume overall profitability of the Company as early as possible and proactively seek profitable growth.”
- Price Action: EDU shares are trading higher by 6.42% at $25.59 on the last check Wednesday.
Merck & Co Accused of Underplaying Mental Health Risks from Asthma and Allergy Drug Singulair
Initially, when released in 1998, Merck & Co Inc's (NYSE: MRK) asthma and allergy drug, Singulair, claimed side effects were mild and similar to a placebo, and the label stated that its distribution in the brain was "minimal," with no mention of psychiatric side effects.
