Beijing-based New Oriental Education and Technology Group Inc., a provider of private educational services in China, reported better-than-expected quarterly results on an increase in student enrollments.
For the third quarter, the company earned $11.6 million, or 29 cents per American Depositary Share, compared with $8.4 million, or 22 cents per ADS, in the year-ago period.
New Oriental recorded revenue of $48.1 million in the quarter, which was 46.9 percent up from the same period last year. Net income increased 38.1 percent year-on-year to $11.6 million in the quarter.
Analysts surveyed by Thomson Financial forecast quarterly revenue of $35 million.
Student enrollments were up 34.8 percent year-on-year to 268,400. Student enrollment rose 38 percent and deferred revenue more than doubled due to severe winter storms during the period.
Shares on the New York Stock Exchange closed up $3.37, or 5.24 higher at $67.70.
Looking ahead, New Oriental said it expects fourth quarter revenue to range from $32.1 million to $33.4 million, which represents a growth range of 29 percent to 34 percent.
New Oriental also announced that it has sealed a deal to acquire Mingshitang, a Beijing company that offers tutoring to students who want to retake their college entrance examinations. The acquisition is expected to close in June 2008.