China's New Oriental Education falls after dismal Q4 results

New Oriental Education & Technology

27/07/2022 13:56

** U.S-listed shares of Chinese tutoring and online
education service group New Oriental Education  EDU.N  down 2.7%
at $23.40  
    ** Co posts a wider-than-expected Q4 adjusted loss of
0.94/ADS  urn:newsml:reuters.com:*:nASA03HMJ
    ** Q4 revenue decreases 56.8% y-o-y to $524 mln due to the
cessation of K-9 academic after-school tutoring services in
compliance with the government policies in China, still beats
consensus estimates
    ** Earlier this year, EDU dismissed 60,000 employees after
Beijing enforced new sweeping rules on the country's private
education industry that barred for-profit tutoring last year
 urn:newsml:reuters.com:*:nL1N2Y20IW
    ** Co says additional costs and expenses due to termination
of lease agreements in relation to closure of learning centers
and employee layoffs were largely absorbed in fiscal year 2022
    ** For Q1 2023, EDU expects total revenue to be in the range
of $641.3 mln to $680.6 mln, a y-o-y decline in the range of 51%
to 48%
    ** EDU also announces a share repurchase program of up to
$400 mln
    ** Nine of 13 brokerages rate the stock "buy" or higher, and
4 "hold"; their median PT is $23.20 - Refinitiv data
    ** As of last close, stock had risen 14.52% YTD

 (Reporting by Devik Jain in Bengaluru)
 ((Devik.Jain@thomsonreuters.com;))