New Oriental Education 3Q earnings jump 38 pct

Third quarter earnings rose to $11.6 million, or 29 cents per American Depositary Share, from $8.4 million, or 22 cents per ADS, a year ago.

Revenue surged 47 percent to $48.1 million for the fiscal quarter ended Feb. 29, from $32.8 million in the prior year.

Analysts surveyed by Thomson Financial expected third-quarter earnings of 23 cents per share on revenue of $44.3 million.

New Oriental Chief Financial Officer Louis T. Hsieh noted that severe winter storms forced the company to close dozens of schools and learning centers in late January and early February.

He said most affected students chose to defer their enrollments to future quarters rather than cancel their registrations. As a result, student enrollments surged 35 percent to 268,400 during the quarter, and deferred revenue balance, or money collected from students for classes in future quarters, more than doubled to $35.8 million at the end of the quarter.

The company also noted that it has agreed to acquire a 60 percent equity stake in Mingshitang, a Beijing-based private school that specializes in tutoring students who want to retake the gaokao exam, the Chinese college entrance test.

Financial terms were not disclosed.