New Oriental Education & Technology Group
by Michael VodickaSeptember 15, 2011 | Comments : 0 Recommended this article: (0)
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New Oriental Education & Technology Group provides private educational services primarily in the people's Republic of China. The company was founded in 1993 and has a market cap of $5.4 billion.
EDU has been bucking the weak market, recently surging higher and jumping into a new multi-year high. The gains come on the heels of strong Q4 results from July that came in well ahead of expectations.
Revenue for the period was up 59% from last year to $138 million. Earnings also looked great, coming in at 10 cents, double the Zacks Consensus Estimate calling for 5 cents.
The good quarter was driven by an increase in enrollments, with the number of students from last year climbing 12% to 489,000.
New Oriental also has an awesome financial profile, with cash and short-term investments up $198 million from last year to $617 million against no long-term debt.
We saw some decent movement in estimates off the good quarter, with the current year adding 4 cents to 90 cents. The next-year estimate also added 4 cents, climbing to $1.18, a bullish 32% growth projection.
But in spite of the gains, the valuation picture still looks reasonable, with a PEG ratio of 1.09 only marginally higher than the benchmark of 1 for value.
On the chart, shares recently surged higher into a new multi-year high. Look for support from the trend line on any weakness. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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