New Oriental Education & Technology Group Inc. (NYSE:EDU) Analysts Are Pretty Bullish On The Stock After Recent Results

As you might know, New Oriental Education & Technology Group Inc. (NYSE:EDU) recently reported its first-quarter numbers. Revenues of US$1.5b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.50, missing estimates by 3.2%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for New Oriental Education & Technology Group from 27 analysts is for revenues of US$5.37b in 2026. If met, it would imply an okay 7.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 29% to US$2.98. In the lead-up to this report, the analysts had been modelling revenues of US$5.34b and earnings per share (EPS) of US$3.04 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for New Oriental Education & Technology Group

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.1% to US$61.88. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic New Oriental Education & Technology Group analyst has a price target of US$78.60 per share, while the most pessimistic values it at US$46.90. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting New Oriental Education & Technology Group's growth to accelerate, with the forecast 10% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.7% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 10% per year. New Oriental Education & Technology Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for New Oriental Education & Technology Group going out to 2028, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.