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BEIJING - New Oriental Education & Technology Group Inc. (NYSE: EDU) reported second-quarter earnings that fell short of analyst expectations, sending shares down sharply in Tuesday trading.
The Chinese private education provider posted adjusted earnings per American depositary share of $0.22 for the fiscal second quarter ended November 30, missing the consensus estimate of $0.32.
Revenue rose 19.4% year-over-year to $1.04 billion, slightly ahead of the $1.03 billion analysts expected.
New Oriental's stock plunged 12.56% following the earnings release, as investors reacted negatively to the earnings miss despite the revenue beat.
"We are encouraged by the sustained healthy top line growth of 19.4% in the second fiscal quarter of this year," said Michael Yu, New Oriental's Executive Chairman, in a statement.
He noted that revenue from overseas test preparation and study consulting businesses grew 21.1% and 31% respectively compared to last year.
However, operating income decreased 9.8% year-over-year to $19.3 million. The company said this was partly due to costs related to accelerated capacity expansion for educational businesses.
Looking ahead, New Oriental expects third quarter revenue between $1.01 billion and $1.03 billion, representing growth of 18% to 21% year-over-year.
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