New Oriental Education reports Q1 EPS $1.13, consensus 81c

Reports Q1 revenue $1.1B, consensus $1.01B. Michael Yu, New Oriental’s executive chairman, commented, “We are very pleased to begin the fiscal year 2024 with robust top-line growth of 47.7%, which exceeded the high-end of our expected range. Moreover, we achieved a remarkable year-over-year improvement in operating margin. Our overseas test preparation and overseas study consulting businesses also recorded encouraging results with approximately 51.7% and 26.6% growth year over year, respectively. In addition, the domestic test preparation business targeting adults and university students recorded a growth of approximately 25.5% year over year. Furthermore, our new educational business initiatives achieved very promising results in this fiscal quarter, with 103.3% revenue growth year over year. Among these new educational business initiatives, our non-academic tutoring courses were offered in around 60 cities, attracting approximately 438,000 student enrollments in this fiscal quarter; simultaneously, our intelligent learning system and devices have been adopted in around 60 cities, with approximately 181,000 active paid users in this fiscal quarter. After over one year of trial and development, these new businesses started to make meaningful contributions to the Company’s revenue and have become some of the key drivers of growth and margin improvement. We will continue to focus on improving the quality of our product offerings and services, leveraging our brand advantage and rich educational resources to capture these new market opportunities.”