Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting the utility of a "Recent Price Strength" screen to identify stocks with strong fundamentals and upward momentum [1]. Group 1: Stock Performance - New Oriental Education (EDU) has shown a solid price increase of 17% over the past 12 weeks, indicating investor confidence in its potential upside [2]. - The stock has maintained a price increase of 1% over the last four weeks, suggesting that the upward trend is still intact [2]. - EDU is currently trading at 86.2% of its 52-week High-Low Range, indicating it may be on the verge of a breakout [2]. Group 2: Fundamental Strength - EDU carries a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [3]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [3]. - The Average Broker Recommendation for EDU is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [3]. Group 3: Investment Strategy - The article suggests that investors should consider other stocks that pass the "Recent Price Strength" screen, indicating a broader strategy for identifying potential winning stocks [4]. - The Zacks Premium Screens offer over 45 strategically created options to help investors find stocks that could outperform the market [4].

Financial Performance - Total net revenues for the third fiscal quarter of 2024 increased by 60.1% year over year to US$1,207.3 million[2] - Operating income rose by 70.6% year over year to US$113.4 million, with a GAAP operating margin of 9.4%[10] - Net income attributable to New Oriental increased by 6.8% year over year to US$87.2 million, with diluted net income per ADS of US$0.52[11] - New Oriental reported net revenues of $1,207,286 for the three months ended February 29, 2024, representing an increase of 60% compared to $754,153 for the same period in 2023[29] - Operating income for the same period was $113,432, up from $66,491, indicating a significant improvement in operational efficiency[29] - The company’s net income attributable to shareholders was $87,167, compared to $81,648 in the prior year, reflecting a year-over-year increase of 6.2%[29] - For the three months ended February 29, 2024, net income attributable to New Oriental was $87,167, an increase of 6.3% from $81,648 for the same period in 2023[31] - Non-GAAP net income attributable to New Oriental for the three months ended February 29, 2024, was $104,716, compared to $95,362 for the same period in 2023, reflecting a growth of 9.8%[31] - For the nine months ended February 29, 2024, net revenues were $3,176,907, a significant increase of 48.7% from $2,137,189 in the same period of 2023[37] - Operating income for the nine months ended February 29, 2024, was $339,898, compared to $141,992 for the same period in 2023, marking an increase of 139.5%[37] - Non-GAAP operating income for the nine months ended February 29, 2024, was $436,559, up from $201,242 in the same period of 2023, reflecting a growth of 116.7%[39] Cash and Assets - Cash and cash equivalents, term deposits, and short-term investments totaled approximately US$4.8 billion by the end of the quarter[5] - Cash and cash equivalents increased to $2,013,627 as of February 29, 2024, from $1,662,982 as of May 31, 2023, showing a growth of 21%[27] - Total current assets rose to $5,127,095, up from $4,413,887, marking an increase of 16%[27] - Cash, cash equivalents, and restricted cash at the end of the period on February 29, 2024, were $2,189,074, compared to $1,431,001 at the end of the same period in 2023[35] - The company’s total assets reached $7,189,543, an increase from $6,392,458, representing a growth of 12.5%[27] Liabilities and Expenses - Operating costs and expenses increased by 59.1% year over year to US$1,093.9 million, driven by growth in East Buy private label products[8] - The company’s operating cost and expenses totaled $1,093,854, compared to $687,662 in the previous year, reflecting a 59% increase[29] - Total liabilities increased to $3,039,460 from $2,577,670, which is a rise of 17.9%[27] - Total operating costs and expenses for the three months ended February 29, 2024, were $1,093,854, up 59% from $687,662 in the same period of 2023[31] Deferred Revenue and Enrollment - Deferred revenue increased by 30.8% year over year to US$1,521.7 million, reflecting cash collected upfront from customers[14] - New educational business initiatives achieved 72.7% revenue growth year over year, with approximately 355,000 student enrollments in non-academic tutoring courses[5] - The total number of schools and learning centers reached 911, an increase of 199 compared to the previous year[4] Future Outlook - The company expects total net revenues for the fourth quarter of fiscal year 2024 to be in the range of US$1,101.5 million to US$1,127.3 million, representing a year-over-year increase of 28% to 31%[17]

Core Viewpoint - New Oriental Education & Technology Group Inc. reported strong financial results for the third fiscal quarter of 2024, with significant year-over-year growth in revenues and operating income, driven by its educational initiatives and e-commerce business [1][2][10]. Financial Highlights - Total net revenues for the third fiscal quarter reached US$1,207.3 million, a 60.1% increase year over year [2][10]. - Operating income increased by 70.6% year over year to US$113.4 million [2][13]. - Net income attributable to New Oriental rose by 6.8% year over year to US$87.2 million [2][14]. Key Financial Results - Non-GAAP operating income for the quarter was US$140.9 million, reflecting a 60.3% increase year over year [3][13]. - Non-GAAP net income attributable to New Oriental was US$104.7 million, a 9.8% increase year over year [15]. - Basic and diluted net income per ADS were US$0.53 and US$0.52, respectively, marking increases of 7.7% and 8.6% year over year [14][15]. Operating Highlights - The total number of schools and learning centers increased to 911, up from 843 in the previous quarter and 712 a year ago [6]. - New educational business initiatives achieved 72.7% revenue growth year over year, with non-academic tutoring courses attracting approximately 355,000 student enrollments [7]. Business Growth - The overseas test preparation and study consulting businesses grew by approximately 52.6% and 25.7% year over year, respectively [7]. - The domestic test preparation business targeting adults and university students recorded a growth of approximately 53.2% year over year [7]. Cash Flow and Balance Sheet - The company reported a positive operating cash flow of US$109.4 million for the quarter, with cash and cash equivalents totaling approximately US$4.8 billion by the end of the quarter [7][16]. - Deferred revenue increased by 30.8% year over year to US$1,521.7 million, indicating strong demand for future services [18]. Share Repurchase Program - As of April 23, 2024, the company repurchased approximately 6.0 million ADSs for about US$195.3 million under its share repurchase program [8][9]. Outlook - New Oriental expects total net revenues for the fourth quarter of fiscal year 2024 to be in the range of US$1,101.5 million to US$1,127.3 million, representing a year-over-year increase of 28% to 31% [21].

Core Viewpoint - New Oriental Education and Technology Group Inc. will report its financial results for the third quarter ended February 29, 2024, on April 24, 2024, before the U.S. market opens [1] Group 1: Financial Reporting - The earnings conference call will take place at 8 AM U.S. Eastern Time on April 24, 2024, which corresponds to 8 PM Beijing/Hong Kong Time on the same day [1] - Participants can register for the conference call in advance and will receive dial-in numbers and a unique personal PIN upon registration [3] - A live and archived webcast of the conference call will be available for access [3][4] Group 2: Company Overview - New Oriental is a provider of private educational services in China, offering a variety of educational programs, services, and products [5] - The company's offerings include educational services, test preparation courses, private label products, livestreaming e-commerce, and overseas study consulting services [5] - New Oriental is listed on both NYSE (NYSE: EDU) and SEHK (9901.SEHK), with its American Depositary Shares (ADSs) representing ten common shares [5]

Financial Data and Key Metrics Changes - New Oriental reported a significant increase in net income attributable to the company, reaching $30.1 million, which represents a 4007.4% increase year-over-year [15] - Non-GAAP operating margin improved to 5.9%, while operating income was $21.3 million compared to a loss of $2.5 million in the same period last year [15][16] - Total cash and cash equivalents, term deposits, and short-term investments amounted to approximately $4.8 billion [12] Business Line Data and Key Metrics Changes - The overseas test prep business saw a revenue increase of 47% in dollar terms or 50% in RMB terms year-over-year [6] - The overseas study consulting business recorded a revenue increase of about 32% in dollar terms or 35% in RMB terms year-over-year [6] - The adults and university students business experienced a revenue increase of 43% in dollar terms or 46% in RMB terms year-over-year [6] - New educational business initiatives reported a revenue increase of about 68% in dollar terms or 72% in RMB terms year-over-year [8] Market Data and Key Metrics Changes - The top 10 cities in China contributed over 60% of the revenue from non-academic tutoring courses [7] - The intelligent learning system and devices business reported approximately 181,000 active paid users [8] - The cultural tourism business, which includes study tours and research camps, conducted activities in over 50 cities, with the top 10 cities contributing over 55% of revenue [9] Company Strategy and Development Direction - The company plans to moderately increase learning center capacity by about 20% year-over-year, focusing on cities with better performance [19] - New Oriental aims to integrate AI and ChatGPT technologies into its educational offerings to enhance growth and operational efficiency [20] - The company is committed to maintaining a healthy market share growth and creating sustainable value for customers and shareholders in the long term [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand in the education sector and the reduced competition due to market consolidation during COVID [24][53] - The company expects total net revenue for the next quarter to be in the range of $1,070.9 million to $1,093.5 million, representing a year-over-year increase of 42% to 45% [19] - Management highlighted the importance of balancing top-line growth with margin expansion, indicating a cautious approach to rapid expansion [32] Other Important Information - Operating costs and expenses for the quarter increased by 32.4% year-over-year, primarily due to growth in East Buy's private-label products and live-streaming e-commerce business [14] - The company has authorized a share repurchase program of up to $500 million, extending it through May 31, 2024 [13] Q&A Session Summary Question: What is driving the strong growth in the third quarter guidance? - Management indicated strong demand in the education sector and less competition due to market consolidation as key drivers for the expected revenue growth of 42% to 45% [24] Question: What considerations are there for the learning center expansion? - Management noted that the expansion will be moderate, focusing on cities with better performance, and will monitor the pace of new openings based on operational results [28] Question: What are the bottlenecks for faster expansion? - Management mentioned that the OMO model allows for better utilization of existing resources, balancing growth with margin expansion [32] Question: Can you provide insights on margin expansion? - Management highlighted that the non-GAAP operating margin expanded due to improved utilization rates and higher margins from new business initiatives [37] Question: How is the cultural tourism business conducted? - Management explained that the tourism business includes study tours and research camps, with revenue recorded separately from educational services [42] Question: What are the long-term margin expectations for new education businesses? - Management expects the margin for new education businesses to exceed 20% in the future, driven by lower fixed costs and higher utilization [47]

Core Viewpoint - New Oriental Education & Technology Group Inc. reported strong financial results for the second fiscal quarter of 2024, with significant year-over-year growth in revenues and net income, indicating a robust recovery and expansion in its educational services and related businesses [1][4]. Financial Highlights - Total net revenues for the second fiscal quarter increased by 36.3% year over year to US$869.6 million [2][6]. - Operating income was US$21.3 million, a turnaround from a loss of US$2.5 million in the same period of the prior fiscal year [2][9]. - Net income attributable to New Oriental surged by 4,007.4% year over year to US$30.1 million [2][10]. - Non-GAAP operating income for the quarter was US$50.9 million, representing a 212.2% increase year over year [2][9]. - The company reported a positive operating cash flow of US$300.6 million for the quarter [4][12]. Operational Highlights - The total number of schools and learning centers increased to 843 as of November 30, 2023, up from 793 as of August 31, 2023 [3]. - The overseas test preparation and overseas study consulting businesses grew by approximately 46.5% and 31.7% year over year, respectively [4]. - Domestic test preparation for adults and university students recorded a growth of approximately 42.7% year over year [4]. - New educational business initiatives achieved a revenue growth of 68.3% year over year, with non-academic tutoring courses attracting approximately 786,000 student enrollments [4]. Cost and Expenses - Operating costs and expenses for the quarter were US$848.3 million, a 32.4% increase year over year [7]. - Selling and marketing expenses increased by 62.2% year over year to US$155.0 million [7]. - General and administrative expenses rose by 29.6% year over year to US$270.7 million [7]. Balance Sheet and Cash Flow - As of November 30, 2023, New Oriental had cash and cash equivalents totaling approximately US$1.9 billion, with total cash, cash equivalents, term deposits, and short-term investments amounting to approximately US$4.8 billion [13]. - Deferred revenue increased by 44.4% year over year to US$1.645 billion [13]. Outlook - New Oriental expects total net revenues for the third quarter of fiscal year 2024 to be in the range of US$1,070.9 million to US$1,093.5 million, reflecting a year-over-year increase of 42% to 45% [18].

Financial Performance - Total net revenues for the second fiscal quarter of 2024 increased by 36.3% year over year to US$869.6 million[2] - Operating income was US$21.3 million, compared to a loss of US$2.5 million in the same period of the prior fiscal year, representing a 957.8% increase[3] - Net income attributable to New Oriental surged by 4,007.4% year over year to US$30.1 million for the second fiscal quarter of 2024[3] - Non-GAAP net income attributable to New Oriental for the quarter was US$50.2 million, representing a 182.6% increase year over year[13] - New Oriental's net income for the three months ended November 30, 2023, was RMB30,066 (US$4.2 million), compared to RMB732 (US$0.1 million) in the same period of the prior year[30] - Non-GAAP net income attributable to New Oriental for the three months ended November 30, 2023, was $50,158 thousand, compared to $17,750 thousand in the prior year, representing an increase of 182%[32] - For the six months ended November 30, 2023, net revenues were $1,969,621 thousand, a 42.3% increase from $1,383,036 thousand in the same period of 2022[38] - The company reported a net income of $214.866 million for the six months ended November 30, 2023, compared to $101.167 million for the same period in 2022, reflecting a year-over-year increase of approximately 112.3%[52] Business Growth - The total number of schools and learning centers reached 843, an increase of 50 compared to the previous quarter[5] - The overseas test preparation and overseas study consulting businesses grew by approximately 46.5% and 31.7% year over year, respectively[5] - New educational business initiatives achieved 68.3% revenue growth year over year, with approximately 786,000 student enrollments in non-academic tutoring courses[6] - For the first six months ended November 30, 2023, East Buy recorded total revenue of RMB2,795.0 million (US$386.3 million), a 34.4% increase from RMB2,080.1 million in the same period of the prior fiscal year[19] - East Buy's net profit for the same period was RMB249.2 million (US$34.4 million), a 57.4% decrease from RMB585.3 million in the prior fiscal year[19] Cash Flow and Assets - Operating cash flow for the quarter was approximately US$300.6 million, with cash and cash equivalents totaling around US$4.8 billion[6] - New Oriental's total current assets increased to RMB4,976.9 million (US$688.5 million) as of November 30, 2023, from RMB4,413.9 million (US$610.5 million) as of May 31, 2023[29] - New Oriental's cash and cash equivalents increased to RMB1,942.6 million (US$268.5 million) as of November 30, 2023, from RMB1,663.0 million (US$230.5 million) as of May 31, 2023[29] - Cash, cash equivalents, and restricted cash at the end of the period on November 30, 2023, totaled $2,120,746 thousand, up from $1,122,824 thousand a year earlier, marking an increase of 88.9%[36] Liabilities and Equity - Total liabilities for New Oriental increased to RMB3,035.7 million (US$420.5 million) as of November 30, 2023, compared to RMB2,577.7 million (US$360.5 million) as of May 31, 2023[29] - The total liabilities as of November 30, 2023, were $3.036 billion, which is consistent with the previous reporting period[53] - The company’s total equity as of November 30, 2023, was $4.075 billion, a slight decrease from $4.096 billion as of May 31, 2023[53] Future Outlook - New Oriental expects total net revenues in the third quarter of fiscal year 2024 to be in the range of US$1,070.9 million to US$1,093.5 million, representing a year-over-year increase of 42% to 45%[20] Operating Costs - Total operating costs and expenses for the three months ended November 30, 2023, were $848,258 thousand, up from $640,702 thousand in the same period of 2022, reflecting a 32.4% increase[32] - The cost of revenues for the six months ended November 30, 2023, was $860.411 million, up from $638.174 million for the same period in 2022, representing an increase of approximately 34.7%[51] Tax and Fair Value Changes - The provision for income taxes for the six months ended November 30, 2023, was $74.231 million, compared to $26.912 million for the same period in 2022, indicating an increase of approximately 175.5%[52] - The company recognized a gain from fair value change of investments amounting to $18.166 million for the six months ended November 30, 2023, compared to a loss of $1.539 million for the same period in 2022[52] Accounting Policies - The adjustments made in the reconciliation of financial results under IFRSs reflect the different accounting treatments according to the Group's accounting policies, ensuring compliance with both US GAAP and IFRSs[49]

Core Viewpoint - New Oriental Education & Technology Group Inc. is expected to report strong growth in both earnings and net revenues for the second quarter of fiscal 2024, driven by increased demand in its test preparation and overseas study consulting businesses [1][2][3]. Financial Performance - In the last reported quarter, net revenues exceeded the Zacks Consensus Estimate by 10.2%, with year-over-year growth of 135.4% in earnings and 47.7% in net revenues [1]. - The Zacks Consensus Estimate for fiscal Q2 2024 earnings per share is 27 cents, reflecting a 170% increase from the previous year's 10 cents [2]. - The consensus for net revenues is projected at $828.1 million, indicating a 29.7% growth from $638.2 million reported a year ago [2]. Growth Drivers - The anticipated revenue growth is attributed to rising demand from both domestic and international markets, particularly among adults and university students for test preparation services [3]. - New educational initiatives, including non-academic tutoring and intelligent learning systems, are expected to contribute positively to revenue growth and the expansion of schools and learning centers [3][4]. - The company is focusing on enhancing service quality and operational efficiencies, which are likely to improve margins [4]. Earnings Prediction Model - The current model does not predict an earnings beat for New Oriental, as it lacks a positive Earnings ESP and a higher Zacks Rank [5]. - The Earnings ESP for New Oriental is 0.00%, and it holds a Zacks Rank of 3 [5].

Industry Overview - The Covid-19 crisis accelerated the digitalization of in-person functionalities, significantly impacting remote learning stocks [1] - The online education market is projected to generate revenue of $87.51 billion by the end of this year, with a compound annual growth rate (CAGR) of 11.05% through 2028, potentially reaching $133.1 billion [1] Company Analysis: New Oriental Education (EDU) - New Oriental Education is the largest comprehensive private educational company in China, with a market revenue of approximately $130 billion [2] - The company is well-positioned to benefit from the projected growth in the K-12 education sector following a downturn during the pandemic [2] Company Analysis: Stride (LRN) - Stride is a for-profit education company providing online and blended education programs, with a significant return of almost 85% in equity value over the past 52 weeks and 131% over the past five years [5] - The company has a price/earnings-to-growth (PEG) ratio of 0.65X, lower than 63.22% of its peers, and is rated a strong buy with a price target of $66.75 [6] Company Analysis: Grand Canyon Education (LOPE) - Grand Canyon Education offers online and on-campus programs and is recognized as Arizona's premier Christian university [7] - The company is fairly valued with a trailing-year earnings multiple of 19.7X, and it enjoys a strong buy rating with a price target of $145.67 [8]

Company Overview - New Oriental Education and Technology Group Inc. is a provider of private educational services in China, offering a wide range of educational programs, services, and products to a diverse student population throughout the country [5]. Financial Results Announcement - The company will report its financial results for the second quarter ended November 30, 2023, before the U.S. market opens on January 24, 2024 [1]. - An earnings conference call will be hosted by New Oriental's management at 8 AM on January 24, 2024, U.S. Eastern Time [1]. Conference Call Details - Participants can register in advance for the conference call using a provided link, which will give them access to dial-in numbers and a unique personal PIN [3]. - A live and archived webcast of the conference call will be available for access [3]. Replay Information - A replay of the conference call will be accessible via the webcast on-demand until January 24, 2025 [4].