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New Oriental (EDU) Lures Investors With Special Cash Dividend
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New Oriental Education & Technology Group Inc.'s (EDU - Free Report) board of directors approved a special cash dividend of 6 cents per share or 60 cents per ADS. The dividend will be payable to shareholders of record as of Sep 9, 2024, Beijing/Hong Kong Time and New York Time, respectively. The total amount of the dividend will be approximately $100 million.
Payments are expected to be made on or around Sep 23 for common shareholders and Sept 26 for ADS holders. The dividend will be subject to the deposit agreement terms for ADS holders.
Investors always prefer a return-generating stock. A high-dividend-yielding one is much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments.
Following the announcement, the stock has dropped 2% during the trading session on Aug 19, 2024.
What’s Driving the Dividend Policy?
Shares of this private educational services provider in China have surged 32.8% in the past year compared with the Zacks Schools industry’s 27% growth. The company is benefiting from increased overseas and domestic (primarily adults and university students) demand for its test preparation business. Also, the demand uptrend for its overseas study consulting business bodes well.
Image Source: Zacks Investment Research
The company's efficient implementation of new educational initiatives, such as non-academic tutoring courses and intelligent learning systems in approximately 60 cities, is contributing to its growth. During fourth-quarter fiscal 2024, the overseas test-prep business reported an 18% year-over-year revenue increase in dollar terms. The overseas study consulting business saw a 17% rise in revenues in dollar terms on a year-over-year basis. The adults and university students’ business experienced a 16% year-over-year increase in revenues in dollar terms. New initiatives focusing on students' overall development have also continued to perform well.
The company's smart education business, educational materials and digitalized study solutions have significantly advanced its overall performance. During the quarter, new educational business initiatives reported a 50% year-over-year increase in revenues in dollar terms.
Going forward, EDU expects its educational business to experience healthy growth in fiscal 2025, driven by strong demand and supported by its established resources. The company aims to deliver margin expansion across most areas, excluding East Buy and to achieve satisfactory operating profit for the fiscal year. Significant investment in the new tourism-related business is anticipated to generate meaningful revenues in the upcoming fiscal year.
Zacks Rank & Key Picks
New Oriental currently carries a Zacks Rank #3 (Hold).
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 18.5%, on average. The stock has rallied 62.6% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for RCL’s 2024 sales and earnings per share (EPS) calls for growth of 18.1% and 69.9%, respectively, from the year-ago levels.
Monarch Casino & Resort, Inc. (MCRI - Free Report) currently sports a Zacks Rank 1. MCRI has a trailing four-quarter negative earnings surprise of 3.5%, on average. The stock has increased 13.1% in the past year.
The Zacks Consensus Estimate for MCRI’s 2024 sales and EPS indicates an increase of 2.3% and 10%, respectively, from the year-ago levels.
DoubleDown Interactive Co., Ltd. (DDI - Free Report) currently flaunts a Zacks Rank of 1. DDI has a trailing four-quarter earnings surprise of 22.1%, on average. The stock has surged 70.2% in the past year.
The Zacks Consensus Estimate for DDI’s 2024 sales and EPS indicates an increase of 12.6% and 15.8%, respectively, from the year-ago levels.
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New Oriental (EDU) Lures Investors With Special Cash Dividend
New Oriental Education & Technology Group Inc.'s (EDU - Free Report) board of directors approved a special cash dividend of 6 cents per share or 60 cents per ADS. The dividend will be payable to shareholders of record as of Sep 9, 2024, Beijing/Hong Kong Time and New York Time, respectively. The total amount of the dividend will be approximately $100 million.
Payments are expected to be made on or around Sep 23 for common shareholders and Sept 26 for ADS holders. The dividend will be subject to the deposit agreement terms for ADS holders.
Investors always prefer a return-generating stock. A high-dividend-yielding one is much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments.
Following the announcement, the stock has dropped 2% during the trading session on Aug 19, 2024.
What’s Driving the Dividend Policy?
Shares of this private educational services provider in China have surged 32.8% in the past year compared with the Zacks Schools industry’s 27% growth. The company is benefiting from increased overseas and domestic (primarily adults and university students) demand for its test preparation business. Also, the demand uptrend for its overseas study consulting business bodes well.
Image Source: Zacks Investment Research
The company's efficient implementation of new educational initiatives, such as non-academic tutoring courses and intelligent learning systems in approximately 60 cities, is contributing to its growth. During fourth-quarter fiscal 2024, the overseas test-prep business reported an 18% year-over-year revenue increase in dollar terms. The overseas study consulting business saw a 17% rise in revenues in dollar terms on a year-over-year basis. The adults and university students’ business experienced a 16% year-over-year increase in revenues in dollar terms. New initiatives focusing on students' overall development have also continued to perform well.
The company's smart education business, educational materials and digitalized study solutions have significantly advanced its overall performance. During the quarter, new educational business initiatives reported a 50% year-over-year increase in revenues in dollar terms.
Going forward, EDU expects its educational business to experience healthy growth in fiscal 2025, driven by strong demand and supported by its established resources. The company aims to deliver margin expansion across most areas, excluding East Buy and to achieve satisfactory operating profit for the fiscal year. Significant investment in the new tourism-related business is anticipated to generate meaningful revenues in the upcoming fiscal year.
Zacks Rank & Key Picks
New Oriental currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are:
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 18.5%, on average. The stock has rallied 62.6% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for RCL’s 2024 sales and earnings per share (EPS) calls for growth of 18.1% and 69.9%, respectively, from the year-ago levels.
Monarch Casino & Resort, Inc. (MCRI - Free Report) currently sports a Zacks Rank 1. MCRI has a trailing four-quarter negative earnings surprise of 3.5%, on average. The stock has increased 13.1% in the past year.
The Zacks Consensus Estimate for MCRI’s 2024 sales and EPS indicates an increase of 2.3% and 10%, respectively, from the year-ago levels.
DoubleDown Interactive Co., Ltd. (DDI - Free Report) currently flaunts a Zacks Rank of 1. DDI has a trailing four-quarter earnings surprise of 22.1%, on average. The stock has surged 70.2% in the past year.
The Zacks Consensus Estimate for DDI’s 2024 sales and EPS indicates an increase of 12.6% and 15.8%, respectively, from the year-ago levels.