New Oriental Education & Technology Group Inc. (EDU:US), China’s largest private education service provider, gained the most in a month in U.S. trading as its sales forecast for the quarter ending in May exceeded that of analysts.
The American depositary receipts of New Oriental surged 5.2 percent to $28.30 by 11:02 a.m. New York time, the biggest intraday increase since March 15. The ADRs earlier soared as much as 8.5 percent to $29.19. The amount of ADRs traded reached 1 million, or 85 percent of their three-month average, data compiled by Bloomberg show.
Revenue at the Beijing-based company will rise 33 percent to 38 percent in the March-May quarter from a year earlier to as much as $189.6 million, New Oriental said in a statement today through PR Newswire. That compared (EDU:US) with a $178.9 million median estimate of eight analysts compiled by Bloomberg.
In the three months ended Feb. 29, or the third quarter of 2012 according to the company’s fiscal calendar, sales gained 32 percent to $174.5 million, New Oriental said in the statement. Net income fell 3.7 percent from a year ago to $22.4 million in the quarter, compared with the $25.14 million median forecast of five analysts.
Two analysts maintained recommendations (EDU:US) to buy the stock today, while one kept a market perform rating, or the equivalent of hold.
To contact the reporter on this story: Belinda Cao in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Emma O’Brien at email@example.com