China’s New Oriental Education & Technology Group (NYSE:EDU) swung higher Monday after reporting a better-than-expected 9.3% surge in first-quarter earnings on higher student enrollment and new learnings centers.
The private education provider, which specializes in test prep and foreign languages, posted net income of $62.36 million, or $1.73 a share, compared with $57 million, or $1.57 a share, in the same quarter last year.
The results beat average analyst estimates polled by Thomson Reuters of $1.71 a share.
Revenue for the Beijing-based company was $192.3 million, up 28.8% from $149.36 million a year ago, and just missing the Street’s view of $195.44 million.
Student enrollment helped push revenue higher, up 8.8% from 704,500 from 647,500 a year ago, driven by new schools and learning centers.
New Oriental’s CEO Michael Yu said the company excelled despite challenges posed by the Shanghai World Expo.
“Our bottom line growth was moderate during the quarter due to active investments in hiring and training K-12 after school tutoring teachers and customer service personnel, and aggressive learning center expansion,” he said.
In August, the company announced its plan to acquire Newave Education, Shanghai’s second largest K-12 English language school.
New Oriental expects second-quarter revenue to be in the range of $82.6 million to $85.7 million, representing growth of 35% to 40%.