New Oriental Shares Rally After Co Expands Tutoring in 2Q

By Rob Curran

Shares of New Oriental Education & Technology Group rallied after strong second-quarter earnings suggested the Chinese after-school tutoring company is back in expansion mode.

New Oriental posted earnings of $30.1 million, or 18 cents an American depositary share, for the quarter ended in November, up sharply from $732,000 a year earlier.

Fiscal second-quarter revenue rose 36% to $869.6 million.

New Oriental and other tutoring firms were hammered by 2021 reforms in China that led to the closure of more than half the firm's schools and learning centers. As a result, the company pivoted back to test-preparation services.

As it reported earnings Wednesday, New Oriental said it is expanding schools and learning centers once more, increasing the tally to 843, up from a count of 748 as of May 2023.

For the third quarter, New Oriental forecast revenue between $1.07 billion and $1.09 billion, up at least 23% from the seasonally soft second quarter.

Shares rose 10% to $79.25.

Write to Rob Curran at rob.curran@wsj.com

(END) Dow Jones Newswires

January 24, 2024 08:13 ET (13:13 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.