What Does Wall Street See for New Oriental Education & Technology Group's Q4?

New Oriental Education & Technology Group (NYS: EDU) is expected to report Q4 earnings on July 17. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict New Oriental Education & Technology Group's revenues will expand 36.7% and EPS will grow 20.0%.

The average estimate for revenue is $187.8 million. On the bottom line, the average EPS estimate is $0.12.


Revenue details
Last quarter, New Oriental Education & Technology Group notched revenue of $174.5 million. GAAP reported sales were 32% higher than the prior-year quarter's $132.5 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.18. GAAP EPS of $0.14 for Q3 were 6.7% lower than the prior-year quarter's $0.15 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 58.8%, 20 basis points better than the prior-year quarter. Operating margin was 9.5%, 650 basis points worse than the prior-year quarter. Net margin was 12.8%, 480 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $766.3 million. The average EPS estimate is $0.94.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 717 members rating the stock outperform and 152 members rating it underperform. Among 203 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 140 give New Oriental Education & Technology Group a green thumbs-up, and 63 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on New Oriental Education & Technology Group is outperform, with an average price target of $32.58.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of New Oriental Education & Tech. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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