New Oriental Announces Results for the Second Fiscal Quarter Ended November 30, 2024

1. New Oriental's Q2 FY2025 revenue increased by 19.4% year-over-year. 2. Operating income dropped by 9.8%, reflecting increased operating expenses. 3. Strong growth in overseas study consulting, 21.1%, and new educational initiatives, 42.6%. 4. Company's cash flow remains strong with $313.3 million generated in operations. 5. A share repurchase program was expanded, increasing buyback authorization to $700 million.

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Why Bullish?

Despite lower operating income, revenue growth and strong cash flow are positive signals. Past examples include similar reactions to strong revenue growth despite cost concerns.

How important is it?

The article provides key quarterly updates impacting investor sentiment and financial strategies.

Why Long Term?

Sustainable growth trajectory through new initiatives suggests a favorable long-term outlook. Previous revenue growth has led to upward stock trends over time.

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EDU 9901.SEHK

BEIJING, Jan. 21, 2025 /PRNewswire/ -- New Oriental Education & Technology Group Inc.

(the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the second fiscal quarter ended November 30, 2024, which is the second quarter of New Oriental's fiscal year 2025.

Financial Highlights for the Second Fiscal Quarter Ended November 30, 2024

Key Financial Results

Key Metrics	2Q FY2025	2Q FY2024	% Change
Net revenues	1,038,636	869,600	19.4 %
Operating income	19,255	21,342	-9.8 %
Non-GAAP operating income	27,580	50,902	-45.8 %
Net income attributable to New Oriental	31,931	30,066	6.2 %
Net income per ADS - basic	0.20	0.18	11.1 %

Operating Highlights for the Second Fiscal Quarter Ended November 30, 2024

Michael Yu, New Oriental's Executive Chairman, commented, "We are encouraged by the sustained healthy top line growth of 19.4% in the second fiscal quarter of this year. Total net revenues, excluding revenues generated from East Buy private label products and livestreaming business, increased by 31.3% year over year. Our overseas test preparation and overseas study consulting business increased by approximately 21.1% and 31.0% year over year, respectively. In addition, the domestic test preparation business targeting adults and university students recorded a growth of approximately 34.9% year over year. Furthermore, our new educational business initiatives have maintained strong momentum this fiscal quarter, with revenue growth of 42.6% year over year."

Recent Development

On August 19, 2024, New Oriental announced its board of directors approved a special cash dividend of US$0.06 per common share, or US$0.6 per ADS, to holders of common shares and ADSs of record as of the close of business on September 9, 2024...

About New Oriental

New Oriental is a provider of private educational services in China offering a wide range of educational programs, services and products to a varied student population throughout China. For more information about New Oriental, please visit http://www.neworiental.org/english/.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995...