New Oriental Education & Technology Group Inc. (EDU) shares were rising 14.88% on Tuesday, May 25, 2021, premarket, as of this writing. yesterday, EDU’s stock lost 18.29% to close Monday’s session at $9.07 per share. EDU shares have fallen 20.05% over the last 12 months, and they have slid down 26.62% in the past week. Over the past three months, the stock has lost 50.32%, while over the past six months, it has declined 49.80%.
Let’s see is there any recent development behind its pre-market surging?
Recent Fiscal Results Announcement
On April 20, 2021, New Oriental Education & Technology Group Inc released its unaudited financial results for the third fiscal quarter ended February 28, 2021.
Q3 2021 financial highlights
- New Oriental Education & Technology Group reported total net revenue of $1,190.5 million for the third fiscal quarter of 2021 compared to $923.21 million in Q3 2020.
- Operating income was $101.5 million for the third fiscal quarter of 2021 compared to $117.25 million in Q3 2020.
- Operating costs and expenses for the quarter were US$1,089.0 million.
- Net income attributable to New Oriental was $151.3 million for Q3 2021 compared to $137.71 million in Q3 2020.
- In Q3 2021, Basic and diluted earnings of $0.09per ADS remain the same for Q3 2021 and Q3 2020.
- New Oriental had cash and cash equivalents of US$1,569.8 million on February 28, 2021.
Q4 2021 financial outlook
For the next quarter, EDU is expecting, net revenue in the range of US$1,101.9 million to US$1,141.8 million.
Extraordinary general meeting outcomes
On March 8, 2021, New Oriental Education & Technology Group announced the results of an extraordinary general meeting and said that each of the proposed resolutions submitted for shareholder approval has been adopted at the general meeting.
The shareholders approved the subdivision of one share into ten common shares and the authorized share capital of the company shall be US$3,000,000 divided into 3,000,000,000 shares with a par value of US$0.001 each.
The shareholders approved the dual foreign name “新东方教育科技（集团）有限公司” being entered in the Register of Companies by the Registrar of Companies in the Cayman Islands, the Chinese name “新东方教育科技（集团）有限公司” be adopted as the dual foreign name of the Company.
There is no recent development for the past month so EDU surging in Tuesday’s pre-market is a bit strange. It is hard to predict how EDU will perform in the remaining week.