China-based, private educational services provider New Oriental Education & Tech Grp (ADR) (NYSE:EDU) closed higher on Tuesday after it reported a revenue beat for the fiscal first quarter, though it missed on EPS estimates.
Shares jumped 9.56% to end at $53.06 with just over 2 million shares traded.
New Oriental had been trading sideways since mid-September but has since broken out of that range by rising over 15% in the past three trading sessions.
New Oriental Education & Tech Grp (ADR) (NYSE:EDU) reports rise in student enrolments
For the first quarter 2017 the company had about 1.33 million students on its rolls, up a solid 31.2% year-on-year.
The company had a total of 771 schools and learning centers as at the end of the quarter.
Quarterly EPs was $0.90, which missed by $0.02, and revenue clocked was $534.1 million, which beat estimates by $12.33 million, and was up 16.5% year on year.
Commenting that it was a very solid start to the new fiscal year, Michael Minhong Yu, New Oriental’s Executive Chairman said that top line growth exceeded the high end of the expected range due to the healthy growth in student enrolments.
The company carried cash and cash equivalents of US$ 591.1 million as at August 31, 2016.
New Oriental Education & Tech Grp (ADR) (NYSE:EDU)’s outlook for the second quarter
During Q2 2017, the company is guiding for net revenue in the range of US$324.6 million to US$335.1 million, representing year-over-year growth in the range of 17% to 21%.
“As we remain focused on our well proven optimize the market strategy, we continue to focus on the extension of our off-line business while also investing in 020, two-way interactive education system, which we believe is, and it will, continue to be a key differentiator to set us apart from competitors and help us further penetrate the market,” said Stephen Yang, CFO, on the earnings call.
The stock has now gained 103.61% over the past year, and is 106.14% above its 52-week low.