New Oriental Education: EPS Growth and More

New Oriental Education & Technology Group Inc. (NYSE: EDU) has been making waves in the education sector with its impressive earnings per share (EPS) growth. The company's strong fundamentals, coupled with its strategic expansion into online education and other services, have contributed to its remarkable performance. This article delves into the factors driving New Oriental Education's EPS growth and explores the potential for future growth.

New Oriental Education's EPS growth rate of 2.3 over the past year is lower than the average growth rate of its peers in the education sector, which was 3.5 over the same period. However, the company's forward EPS growth rate of 4.32 is higher than the average forward EPS growth rate of its peers, indicating significant growth potential in the near future. This suggests that New Oriental Education may have more growth potential than its peers in the near future.

The primary drivers behind New Oriental Education's EPS growth are its strong fundamentals, including high growth rates, a sound financial situation, and positive cash flows. The company's earnings are projected to grow significantly, surpassing the US market average. Despite trading well below estimated fair value, its Return on Equity is expected to remain low. Recent financial results show strong sales and net income growth year-over-year. The company completed a share buyback program worth US$457.9 million, enhancing shareholder value. Revenue guidance for the upcoming quarter indicates a substantial increase compared to last year.



New Oriental Education's EPS growth rate has been impressive, with a forward EPS of 4.32, indicating a significant increase from its historical average. Over the past year, EPS has grown by 74.57%, outpacing the company's average growth rate. This trend suggests a strong upward trajectory in earnings, driven by the company's expanding educational services and test preparation courses.



New Oriental Education's strategic expansion into online education and other services has significantly contributed to its EPS growth. The company's Online Education and Other Services segment has seen a substantial increase in revenue, driven by the growing demand for digital learning platforms and the successful integration of Koolearn.com. This segment's growth, coupled with the strong performance of the Educational Services and Test Preparation Courses segment, has led to a 74.57% increase in earnings in 2024 compared to the previous year. The company's ability to adapt to changing market trends and diversify its revenue streams has been a key driver of its EPS growth.

In conclusion, New Oriental Education & Technology Group Inc. has demonstrated impressive EPS growth, driven by its strong fundamentals, strategic expansion into online education, and successful cost-cutting measures. The company's forward EPS growth rate and potential for future growth make it an attractive investment opportunity in the education sector. As the demand for educational services continues to grow, New Oriental Education is well-positioned to capitalize on emerging opportunities and maintain its competitive edge.