New Oriental Reports Strong Q2 Growth; Guidance Maintained

Strong growth in revenue and net income highlights New Oriental's second-quarter achievements. The company's revenue grew 19.4% year-over-year, showing robust core performance amid macroeconomic challenges.

Date: 21-01-2025

AI Rating: 7

Revenue Growth: New Oriental has reported an impressive revenue growth of 19.4% year over year for Q2 2025, with total net revenues (excluding certain products) increasing by 31.3% year over year. This sharp increase indicates a solid performance that could positively influence stock prices.

Net Income: The net income attributable to New Oriental for the quarter reached $31.9 million, a 6.2% increase year over year. This slight uptrend in net income reflects the company's ability to manage expenses and maintain profitability despite rising operating costs. Such performance metrics can instill confidence among investors, potentially boosting the stock price.

Profit Margins: The operating margin stood at 2.8%, with a non-GAAP operating margin of 3.2%. Although these figures are low, the company has indicated that careful management of expansions and operating efficiency will be pursued to improve margins moving forward. Then again, net margins impact valuation, which may influence investor sentiment and stock prices.

Future Outlook: The company has provided a revenue guidance range of $1,007.3 million to $1,032.5 million for the upcoming quarter, highlighting a year-over-year increase of 18% to 21%. This positive outlook might lead investors to expect continued strong performance, further supporting stock prices.

Stocks: EDU