New Oriental Education rallied more than 11% early Wednesday after the China stock reported mixed fiscal second-quarter earnings and revenue but issued optimistic guidance for the current quarter.
The China-based online education stock reported adjusted fiscal Q2 earnings of 29 cents per share, up 190% vs. a year earlier. Revenue swelled 36% to $870 million. Ahead of earnings, Wall Street forecast EPS of 26 cents and sales totaling $814 million.
New Oriental Education executives were pleased with the results in what's "traditionally the slowest quarter of the year."
The company expects third-quarter revenue to jump more than 40% to $1.07 billion-$1.09 billion. Wall Street sees fiscal Q3 sales of $942 million.
New Oriental provides private online education, language learning, test preparation and services for studying abroad.
China Stock: EDU
EDU soared 11.2% to 80.01 in Wednesday's market action, moving above an early buy point of 78.19.
On Tuesday, EDU advanced 4.4% to 71.99. On a weekly chart, EDU stock has formed a base with an official 83.73 entry, according to MarketSmith analysis. New Oriental stock gained more than 120% in 2023.
Rival TAL Education surged 10% early Wednesday, making a strong move above the 50-day line and building the right side of a short consolidation. TAL earnings are due Thursday.
China stocks are rallying broadly after People's Bank of China Gov. Pan Gongsheng said Wednesday that China will cut bank reserve ratio requirements in early February. It's the latest move indicating that Chinese authorities are seeking to buoy Chinese stock markets.
Meanwhile, U.S. education technology firm Stride reported strong earnings late Tuesday. LRN stock leapt 7% before Wednesday's open but fell 3.6% during market trade. Shares had closed Tuesday just below a 62.56 buy point from a flat base.
EDU stock has a 94 Composite Rating out of 99. The China stock also has a 93 Relative Strength Rating, an exclusive gauge for share-price movement. Meanwhile, EDU stock has an 81 EPS Rating.
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