New Oriental Education & Technology Group has announced its third quarter 2024 financial results, revealing a strong financial position. The company reported revenue of US$1.21 billion, which was a 60% increase from the same quarter in 2023. Net income also rose to US$87.2 million, a 6.8% increase from the previous year.
However, profit margins decreased to 7.2% from 11% in 3Q 2023 due to higher expenses. Despite this, earnings per share (EPS) improved to US$0.53 from US$0.49 in 3Q 2023.
Looking forward, New Oriental Education & Technology Group is forecasted to achieve an average annual revenue growth of 17% over the next three years, compared to an 11% growth forecast for the Consumer Services industry in the US. However, despite revenue beating analyst expectations by 11%, EPS fell short by the same margin.
To gain a deeper understanding of a company’s financial health, it is important to analyze its balance sheet carefully. This provides insights into its financial position and can help determine whether the stock is over or undervalued based on factors such as fair value estimates, risks, dividends, insider transactions, and financial health metrics like debt-to-equity ratio and interest coverage ratio.
Investors should keep these factors in mind when making investment decisions about New Oriental Education & Technology Group or any other company they are considering investing in.
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