New Oriental (EDU) Lures Investors With Special Cash Dividend

Core Viewpoint - New Oriental Education & Technology Group Inc. has announced a special cash dividend of 6 cents per share, totaling approximately $100 million, reflecting its strong financial performance and commitment to returning value to shareholders [1] Group 1: Dividend Announcement - The board approved a special cash dividend of 6 cents per share or 60 cents per ADS, payable to shareholders of record as of September 9, 2024 [1] - Payments are expected to be made on or around September 23 for common shareholders and September 26 for ADS holders [1] - Following the announcement, the stock dropped 2% during the trading session on August 19, 2024 [1] Group 2: Business Performance - The company’s shares have surged 32.8% in the past year, outperforming the Zacks Schools industry's growth of 27% [2] - Increased demand for test preparation and overseas study consulting services has driven growth, with the overseas test-prep business reporting an 18% year-over-year revenue increase [2] - New educational initiatives, including non-academic tutoring and intelligent learning systems, have contributed to growth, with new initiatives reporting a 50% year-over-year revenue increase [3] Group 3: Future Outlook - New Oriental expects healthy growth in its educational business for fiscal 2025, supported by strong demand and established resources [3] - The company aims for margin expansion across most areas, excluding East Buy, and to achieve satisfactory operating profit for the fiscal year [3] - Significant investment in a new tourism-related business is anticipated to generate meaningful revenues in the upcoming fiscal year [4]