How did EDU's Q3 2024 EPS surprise impact investor confidence?

**New Oriental Education's (EDU) Q3 2024 EPS surprise had a negative impact on investor confidence**, as evidenced by the following points: 1. **EPS Miss**: The company reported an EPS of $0.22 for Q2 2024, which was a significant miss compared to the analyst estimate of $0.45. This indicated a weakness in the company's financial performance, leading to concerns among investors about its profitability. 2. **Revenue Miss**: Additionally, New Oriental Education reported revenue of $1.14 billion for Q2 2024, which was in line with the consensus estimate but revealed a 0.26% decline from the previous quarter. This lack of growth in revenue could suggest slowing demand or market saturation, further dampening investor confidence. 3. **Guidance Challenges**: The company's guidance for Q3 2024 revenue of $1.255-1.284 billion raised questions among investors about the sustainability of future earnings. The current consensus for Q4 2024 revenue estimates a -6% top-line contraction, which implies a challenging outlook for the company's financial performance in the near term. 4. **Broader Market Concerns**: The overall market sentiment towards EDU has been cautious due to these earnings misses and guidance challenges. The company's full-year 2024 earnings report revealed an EPS of $1.87, which was still below market expectations, further impacting investor confidence. In conclusion, EDU's Q3 2024 EPS surprise, coupled with revenue misses and uncertain guidance, has likely eroded investor confidence in the company's financial health and future growth prospects.