Following a 95% Decline, This Chinese Education Stock Attracts a $35 Million Investment from an Institutional Investor
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
0mins
Should l Buy EDU?
Source: NASDAQ.COM
Serenity Capital Management's Investment: Singapore-based Serenity Capital Management increased its stake in New Oriental Education & Technology Group (NYSE:EDU) by 411,380 shares during Q3, raising the total value of its holdings to $34.9 million, making it the fund's fifth-largest position.
Company Performance and Strategy: New Oriental has adapted its business model post-regulatory changes in China, focusing on adult education and consulting, which has led to a 6.1% year-over-year revenue increase in its latest earnings report.
Financial Health: The company ended the quarter with over $1.2 billion in cash and plans to return at least 50% of annual net income to shareholders through dividends and buybacks, indicating a strong financial position.
Long-term Investment Outlook: Serenity's increased investment in EDU reflects a strategic bet on the company's ability to survive and thrive in a challenging regulatory environment, positioning it as a potentially profitable long-term investment.
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Analyst Views on EDU
Wall Street analysts forecast EDU stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 60.240
Low
60.00
Averages
68.00
High
76.00
Current: 60.240
Low
60.00
Averages
68.00
High
76.00
About EDU
New Oriental Education & Technology Group Inc is a holding company principally engaged in the provision of a variety of educational programs, services and products. The Company primarily operates four segments. Educational Services and Test Preparation Courses segment is mainly engaged in the provision of educational services and test preparation courses and online education services. Private Label Products and Livestreaming E-Commerce segment is mainly engaged in the sale of private label products and livestreaming e-commerce business through East Buy. Overseas Study Consulting Services segment mainly helps students through the application and admission process for overseas educational institutions, provides college, graduate and career counseling advice, and counsels and assists students with the immigration process for overseas studies, such as obtaining visas and arranging housing. Other segment is mainly engaged in educational materials and distribution and other businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
New Oriental Reports Significant Profit Growth in Latest Earnings
- Significant Revenue Growth: New Oriental reported revenue of $1.19 billion for the second quarter ending last November, marking a 14.7% year-on-year increase, indicating a recovery in its education and training businesses despite ongoing market challenges.
- Substantial Profit Increase: The company's operating profit surged to $66.3 million, up 244.4% year-on-year, while net profit rose 42.3% to $45.5 million, demonstrating notable improvements in operational efficiency and resource utilization.
- Strong Performance in New Initiatives: The new education initiatives segment achieved a remarkable 21.6% revenue growth during the period, with non-academic tutoring courses launched in about 60 cities, attracting approximately 1.06 million students, reflecting a rebound in market demand.
- Optimistic Outlook: New Oriental raised its full fiscal year revenue guidance to between $5.3 billion and $5.5 billion, forecasting a year-on-year revenue increase of 11% to 14% for the third fiscal quarter, showcasing management's confidence in continued growth.
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- Financial Recovery: The company announced a return to profitability in its latest financial report, with revenue rising 5.7% year-on-year to 2.31 billion yuan, demonstrating its ability to recover from adversity and attracting investor interest.
- Private Label Growth: East Buy's private label business grew 18.1% in the latest six-month period to 2 billion yuan, accounting for 53% of the company's gross merchandise value, indicating a strategic shift in focus for future growth.
- Increased Market Competition: Despite a 14.2% stock price surge following the report, East Buy faces fierce competition from giants like Alibaba, JD.com, and Meituan, which may limit its near-term growth potential.
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- Earnings Beat: New Oriental Education reported a Q2 non-GAAP EPS of $0.45, exceeding expectations by $0.11, indicating strong profitability and boosting market confidence in its future performance.
- Revenue Growth: The company achieved Q2 revenue of $1.19 billion, a 14.4% year-over-year increase that surpassed market expectations by $30 million, primarily driven by its new educational business initiatives, showcasing effective market expansion strategies.
- Future Outlook: New Oriental expects total net revenues for Q3 of fiscal year 2026 to range between $1.3132 billion and $1.3487 billion, reflecting a year-over-year growth of 11% to 14%, indicating optimism about future growth and solidifying its market position.
- Guidance Upgrade: The company raised its full-year revenue guidance for fiscal year 2026 to between $5.2923 billion and $5.4883 billion, representing an 8% to 12% year-over-year increase, highlighting strong growth potential across various business lines and enhancing investor confidence in its long-term prospects.
See More
New Oriental Reports Strong Q2 FY2026 Financial Results
- Significant Revenue Growth: New Oriental reported net revenues of $1.191 billion for Q2 FY2026, reflecting a 14.7% year-over-year increase, primarily driven by the expansion of its new educational business initiatives, indicating strong demand and growth potential in the education market.
- Enhanced Operational Efficiency: The company achieved operating income of $66.3 million, a remarkable 244.4% increase year-over-year, with non-GAAP operating income reaching $89.1 million, up 206.9%, showcasing significant improvements in cost control and operational efficiency.
- Substantial Net Profit Increase: New Oriental's net income for the quarter was $45.5 million, representing a 42.3% year-over-year growth, with net income per ADS at $0.29, highlighting enhanced profitability and increased shareholder returns.
- Shareholder Return Initiatives: The company announced a regular dividend of $0.12 per ADS and initiated a share repurchase program of up to $300 million, aimed at boosting shareholder confidence and enhancing long-term value.
See More
New Oriental Reports Strong Q2 FY2026 Financial Results
- Significant Revenue Growth: New Oriental reported net revenues of $1.191 billion for Q2 FY2026, a 14.7% year-over-year increase, primarily driven by the expansion of its new educational business initiatives, indicating strong market performance.
- Substantial Operating Income Increase: Operating income surged 244.4% to $66.3 million, with non-GAAP operating income rising 206.9% to $89.1 million, reflecting the company's success in enhancing operational efficiency.
- Continued Net Profit Growth: Net income attributable to New Oriental reached $45.5 million, a 42.3% increase year-over-year, with net income per ADS at $0.29, showcasing improved profitability and increased shareholder returns.
- Shareholder Return Initiatives: The company announced a $300 million share repurchase program and has paid a dividend of $0.12 per share, demonstrating its commitment to enhancing shareholder value and boosting market confidence.
See More
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- Earnings Announcement: New Oriental Education is set to announce its Q2 2023 earnings on January 28 before market open, with consensus EPS estimate at $0.34, reflecting a significant year-over-year increase of 54.5%, indicating strong profitability.
- Revenue Expectations: The revenue estimate for Q2 stands at $1.16 billion, representing an 11.7% year-over-year growth, showcasing New Oriental's ongoing expansion and robust market demand in the education sector.
- Historical Performance Review: Over the past two years, New Oriental has beaten EPS estimates 50% of the time and revenue estimates 88% of the time, demonstrating the company's stability and reliability in financial performance.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen two upward revisions and one downward revision, while revenue estimates have experienced three upward revisions and one downward revision, reflecting market confidence and volatility regarding New Oriental's future performance.
See More
New Oriental Reports Significant Profit Growth in Latest Earnings
- Significant Revenue Growth: New Oriental reported revenue of $1.19 billion for the second quarter ending last November, marking a 14.7% year-on-year increase, indicating a recovery in its education and training businesses despite ongoing market challenges.
- Substantial Profit Increase: The company's operating profit surged to $66.3 million, up 244.4% year-on-year, while net profit rose 42.3% to $45.5 million, demonstrating notable improvements in operational efficiency and resource utilization.
- Strong Performance in New Initiatives: The new education initiatives segment achieved a remarkable 21.6% revenue growth during the period, with non-academic tutoring courses launched in about 60 cities, attracting approximately 1.06 million students, reflecting a rebound in market demand.
- Optimistic Outlook: New Oriental raised its full fiscal year revenue guidance to between $5.3 billion and $5.5 billion, forecasting a year-on-year revenue increase of 11% to 14% for the third fiscal quarter, showcasing management's confidence in continued growth.
See More
East Buy Accelerates Same-Day Delivery Expansion
- Same-Day Delivery Expansion: East Buy is building same-day delivery capabilities in its top 10 markets, allowing customers to receive orders placed before 10:30 a.m. on the same day, which is expected to significantly enhance customer satisfaction and strengthen market competitiveness.
- Financial Recovery: The company announced a return to profitability in its latest financial report, with revenue rising 5.7% year-on-year to 2.31 billion yuan, demonstrating its ability to recover from adversity and attracting investor interest.
- Private Label Growth: East Buy's private label business grew 18.1% in the latest six-month period to 2 billion yuan, accounting for 53% of the company's gross merchandise value, indicating a strategic shift in focus for future growth.
- Increased Market Competition: Despite a 14.2% stock price surge following the report, East Buy faces fierce competition from giants like Alibaba, JD.com, and Meituan, which may limit its near-term growth potential.
See More
New Oriental Education Q2 Earnings Exceed Expectations
- Earnings Beat: New Oriental Education reported a Q2 non-GAAP EPS of $0.45, exceeding expectations by $0.11, indicating strong profitability and boosting market confidence in its future performance.
- Revenue Growth: The company achieved Q2 revenue of $1.19 billion, a 14.4% year-over-year increase that surpassed market expectations by $30 million, primarily driven by its new educational business initiatives, showcasing effective market expansion strategies.
- Future Outlook: New Oriental expects total net revenues for Q3 of fiscal year 2026 to range between $1.3132 billion and $1.3487 billion, reflecting a year-over-year growth of 11% to 14%, indicating optimism about future growth and solidifying its market position.
- Guidance Upgrade: The company raised its full-year revenue guidance for fiscal year 2026 to between $5.2923 billion and $5.4883 billion, representing an 8% to 12% year-over-year increase, highlighting strong growth potential across various business lines and enhancing investor confidence in its long-term prospects.
See More
New Oriental Reports Strong Q2 FY2026 Financial Results
- Significant Revenue Growth: New Oriental reported net revenues of $1.191 billion for Q2 FY2026, reflecting a 14.7% year-over-year increase, primarily driven by the expansion of its new educational business initiatives, indicating strong demand and growth potential in the education market.
- Enhanced Operational Efficiency: The company achieved operating income of $66.3 million, a remarkable 244.4% increase year-over-year, with non-GAAP operating income reaching $89.1 million, up 206.9%, showcasing significant improvements in cost control and operational efficiency.
- Substantial Net Profit Increase: New Oriental's net income for the quarter was $45.5 million, representing a 42.3% year-over-year growth, with net income per ADS at $0.29, highlighting enhanced profitability and increased shareholder returns.
- Shareholder Return Initiatives: The company announced a regular dividend of $0.12 per ADS and initiated a share repurchase program of up to $300 million, aimed at boosting shareholder confidence and enhancing long-term value.
See More
New Oriental Reports Strong Q2 FY2026 Financial Results
- Significant Revenue Growth: New Oriental reported net revenues of $1.191 billion for Q2 FY2026, a 14.7% year-over-year increase, primarily driven by the expansion of its new educational business initiatives, indicating strong market performance.
- Substantial Operating Income Increase: Operating income surged 244.4% to $66.3 million, with non-GAAP operating income rising 206.9% to $89.1 million, reflecting the company's success in enhancing operational efficiency.
- Continued Net Profit Growth: Net income attributable to New Oriental reached $45.5 million, a 42.3% increase year-over-year, with net income per ADS at $0.29, showcasing improved profitability and increased shareholder returns.
- Shareholder Return Initiatives: The company announced a $300 million share repurchase program and has paid a dividend of $0.12 per share, demonstrating its commitment to enhancing shareholder value and boosting market confidence.
See More
New Oriental Education Set to Release Q2 Earnings
- Earnings Announcement: New Oriental Education is set to announce its Q2 2023 earnings on January 28 before market open, with consensus EPS estimate at $0.34, reflecting a significant year-over-year increase of 54.5%, indicating strong profitability.
- Revenue Expectations: The revenue estimate for Q2 stands at $1.16 billion, representing an 11.7% year-over-year growth, showcasing New Oriental's ongoing expansion and robust market demand in the education sector.
- Historical Performance Review: Over the past two years, New Oriental has beaten EPS estimates 50% of the time and revenue estimates 88% of the time, demonstrating the company's stability and reliability in financial performance.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen two upward revisions and one downward revision, while revenue estimates have experienced three upward revisions and one downward revision, reflecting market confidence and volatility regarding New Oriental's future performance.
See More
