New Oriental Education & Technology Group: Revenue and Net Income Increase but Profit Margins Decrease in 3Q 2024

New Oriental Education & Technology Group has announced its third quarter 2024 financial results, showing a significant increase in revenue and net income. The company reported US$1.21 billion in revenue, a 60% increase from the same quarter in 2023, and US$87.2 million in net income, a 6.8% increase from the previous year. However, profit margins decreased to 7.2% from 11% in 3Q 2023 due to higher expenses. Earnings per share (EPS) improved to US$0.53 from US$0.49 in 3Q 2023 but still fell short of analyst expectations by 11%.

Looking forward, New Oriental Education & Technology Group is forecasted to achieve an average annual revenue growth of 17% over the next three years, compared to an 11% growth forecast for the Consumer Services industry in the US. Despite this positive outlook, the company’s shares have declined by 2.0% over the past week.

Investors seeking to evaluate a company’s financial health should analyze its balance sheet carefully. New Oriental Education & Technology Group’s balance sheet provides insights into its financial position and can help determine whether its stock is over or undervalued. Valuation of a company can be complex, but a comprehensive analysis can help investors make informed decisions about buying or selling stocks based on fair value estimates, risks, dividends, insider transactions, and financial health factors.

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