New Oriental Education and Technology (EDU) met fiscal first-quarter earnings estimates Tuesday morning, but revenue topped expectations as enrollment climbed. The Chinese for-profit education company also gave upbeat guidance.
Estimates: Analysts expected a 15% rise in earnings to 90 cents per share and a 14 increase in revenue to $521.77 million.
Results: New Oriental's EPS rose 15% to 90 cents while revenue climbed 16.5% to $534.1 million. Total student enrollments jumped 31.2% year-over-year to 1.3 million.
Outlook: New Oriential sees Q2 revenue of $324.6 million-$335.1 million vs. the consensus for $324.4 million. That would be about a 19% gain at the midpoint.
Stock: Shares of the IBD 50 stock jumped 9.6% to close at 53.06 on the stock market today, clearing a 48.51 buy point from a flat base but running well past the 5% chase zone already.
IBD's TAKE: A simple, disciplined options strategy can significantly reduce risk when buying stocks near buy points ahead of earnings reports.
TAL Education (XRS), another Chinese education company, will announce quarterly results Thursday. Analysts expect EPS to climb 21.2% to 23 cents with revenue up 21.3% to $173.3 million.
Tal Education rose 3.9% Tuesday to finish at 77.19, extended from buy range after it broke out of a flat base on Sept. 15.
Shares of Tarena International (TEDU), which provides professional education services in China, rose 1.7%.
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