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New Oriental Education (NYSE: EDU) reported Q1 EPS $ 1.16, $ 0.10 worse than the $ 1.26 estimate. Revenue for the quarter came in at $ 859.8 million versus the consensus estimate of $ 851.12 million.
Michael Yu, New Oriental's Executive Chairman, commented, "We are very pleased to start fiscal year 2019 with a remarkable year-over-year acceleration in our line growth rate at 30.1%, beating that of the same quarter of the previous year. This strong top-line growth has been driven by the growth in the last two months, August 31, 2018. Our key growth driver , K-12 after-school tutoring business, continued its strong growth and achieved 49% increase in revenue., Our U-Can middle and high school all-subjects after-school tutoring business delivered revenue growth of approximately 49%, while the POP Kids program grew by approximately 48% year-over-year. "
Chenggang Zhou, New Oriental's Chief Executive Officer, added, "Guided by our well-proven" Optimize the Market "Strategy, we continue to deepen our market penetration in existing markets, by building our capacity in cities where we see rapid growth This quarter, we added a net of 18 learning centers in existing cities, and opened a new training school in Yiwu.Totogether, the total square meters of the clbadroom 34% year-over-year and 3% quarter-over-quarter.more, this quarter we completed a successful summer campaign by offering low-cost trials for multiple subjects in 39 cities, mainly targeting students before they start the first year at secondary enrollment during the year reached 762,000, year of increase over 37.5% year-over-year, while student retention also improved year-over-year. K-12 Tutoring and Overseas Test Preparation Businesses. "
Stephen Zhihui Yang, New Oriental's Chief Financial Officer, commented, "As a result of the increase in the size of our business, we have no choice. In the same time, we are strongly encouraged to see constant year-over-year utilization, which is a clear indication of the healthy ramping up of new facilities. Fiscal Year, 2019, through the opening of the new learning centers in the future, with a goal of 20-25% in full capacity for the full fiscal year Cities and rolling out of dual-teacher models schools in new cities. ith continued efforts in improving the utilization of our facilities. For our Koolearn.com pure online educational platform, we will continue to invest in new initiatives in the K-12 after-school tutoring business to capture the market. We are confident that our robust ecosystem integrating both offline and online education will deliver sustainable value for our customers and shareholders over the long term. "
GUIDANCE:
New Oriental Education sees Q2 2019 revenue of $ 568.5-586.4 million, versus the consensus of $ 606.53 million.
For earnings history and earnings-related data on New Oriental Education (EDU) click here.
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