Does The Street Have New Oriental Education & Technology Group Figured Out?

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New Oriental Education & Technology Group (NYS: EDU) is expected to report Q4 earnings on July 23. 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 increase 24.9% and EPS will grow 26.7%.

The average estimate for revenue is $241.5 million. On the bottom line, the average EPS estimate is $0.19.


Revenue details
Last quarter, New Oriental Education & Technology Group logged revenue of $218.5 million. GAAP reported sales were 29% higher than the prior-year quarter's $169.9 million.

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 $0.22. GAAP EPS of $0.18 for Q3 were 29% higher than the prior-year quarter's $0.14 per share.

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 58.3%, 90 basis points worse than the prior-year quarter. Operating margin was 10.8%, 60 basis points better than the prior-year quarter. Net margin was 12.8%, 40 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $963.5 million. The average EPS estimate is $0.97.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 706 members out of 850 rating the stock outperform, and 144 members rating it underperform. Among 188 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 give New Oriental Education & Technology Group a green thumbs-up, and 54 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 $20.77.

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The article Does The Street Have New Oriental Education & Technology Group Figured Out? originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends New Oriental Education. 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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