New Oriental Education & Technology Expects FY Revenue of $5.15B to $5.39B

New Oriental Education & Technology Group Inc. expects FY revenue to range between $5.15B and $5.39B. The company reported Q4 revenue of $1.24B and adjusted earnings of $0.61 per ADS. Citigroup upgraded the stock to Buy from Neutral and raised the price target to $77 from $50. JPMorgan also upgraded the stock to Overweight from Neutral and adjusted the PT to $62 from $48.

New Oriental Education & Technology Group Inc. (NYSE: EDU/ 9901.SEHK) has released its unaudited financial results for the fourth fiscal quarter and fiscal year ended May 31, 2025. The company reported total net revenues of $1,243.2 million for the fourth fiscal quarter, representing a 9.4% increase year over year. Excluding revenues from East Buy private label products and livestreaming business, net revenues grew by 18.7% to $1,088.5 million [1].

Operating loss for the quarter was $8.7 million, compared to operating income of $10.5 million in the same period of the prior fiscal year. The non-GAAP operating income increased by 116.3% to $81.7 million [1]. Net income attributable to New Oriental decreased by 73.7% year over year to $7.1 million. The non-GAAP net income attributable to New Oriental increased by 59.4% to $98.1 million [1].

Key highlights from the quarter include a 14.6% and 8.2% year-over-year growth in overseas test preparation and overseas study consulting businesses, respectively. The domestic test preparation business targeting adults and university students grew by approximately 17.0%. The new educational business initiatives maintained strong momentum with a 32.5% year-over-year revenue growth. The non-academic tutoring courses were offered in around 60 cities, attracting approximately 918,000 student enrollments. The intelligent learning system and devices were adopted in around 60 cities, with approximately 255,000 active paid users [1].

Citigroup has upgraded New Oriental's stock to "Buy" from "Neutral" and raised the price target to $77 from $50. JPMorgan has also upgraded the stock to "Overweight" from "Neutral" and adjusted the price target to $62 from $48. These upgrades reflect the company's strong performance and growth prospects [1].

The company expects FY revenue to range between $5.15B and $5.39B. The board of directors approved a three-year shareholder return plan, effective from the fiscal year 2026, with no less than 50% of the Company's net income attributable to New Oriental for the preceding fiscal year dedicated to returning value to shareholders [1].

References:
[1] https://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-ended-may-31-2025-302517170.html