New Oriental's fiscal 4Q profit more than doubles

By The Associated Press
updated 7/18/2011 6:37:54 PM ET
http://www.msnbc.msn.com/id/43801651/ns/business-personal_finance

New Oriental Education & Technology Group Inc. said Monday that its fiscal fourth-quarter profit more than doubled as it signed up more students for its language training and test prep courses.

The company, which is based in Beijing and provides private educational services, reported net income climbed to $14.3 million, or 37 cents per American depositary share, in the three months ended May 31.
That compares with net income of $5.8 million, or 15 cents per American depositary share, in the same period last year.
Excluding the impact of a $1.5 million loss related to the disposal of two subsidiaries during the quarter, New Oriental would have earned 49 cents per American depositary share, the company said.
Analysts were anticipating earnings of 26 cents per American depositary share, according to FactSet.
Quarterly revenue surged 59 percent to $137.4 million, up from $86.6 million in the prior-year quarter. Analysts were anticipating revenue of $119.7 million.
The company said enrollment during the fourth quarter grew 11.9 percent from a year earlier to 489,100.
For the full fiscal year, the company earned $101.8 million, or $2.61 per American depositary share, compared with net income of $77.9 million, or $2.01 per American depositary share, in fiscal 2010.
Revenue grew 44 percent to $557.9 million, up from $386.3 million in the prior fiscal year.
New Oriental said it expects that fiscal first-quarter revenue will range from $255.8 million to $265.4 million, representing year-over-year growth in the range of 33 percent to 38 percent. Analysts expect revenue of $255.4 million.
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Meanwhile, the company said that, starting Aug. 18, it will adjust the ratio of its American depositary shares representing common shares from one ADS to four common shares, to one ADS for one common share.
New Oriental ADS holders as of the close of business on Aug. 17 will receive three additional ADSs for each ADS then held, the company said.
The effect of this ratio change on the ADS price is expected to take place on Aug. 19.
The ratio change will have the same effect as a four-for-one stock split, the company said.
Shares rose 74 cents to $120.60 in aftermarket trading after ending the regular session down $3.16, or 2.6 percent, to $119.86.