NEW ORIENTAL-S shares plummeted 7.97% during intraday trading on Friday, giving back a significant portion of the sharp gains recorded in the prior session following the release of its fourth-quarter fiscal 2026 results.
The steep decline comes after the stock surged 17-18% in the previous trading day, driven by fourth-quarter net revenue of $1.53 billion, up 23% year-over-year and beating consensus estimates. While GAAP net income soared 776% to $62.2 million, adjusted non-GAAP net income fell 10.5% year-over-year to $87.76 million, presenting a mixed picture. Morgan Stanley retained an Equal Weight rating, noting results were only slightly ahead of expectations, even as CMBI raised its target price and maintained a Buy rating on strong core education momentum.
The pullback suggests that some investors are locking in profits after the sharp earnings-driven rally, with lingering concerns over adjusted profitability pressure likely contributing to the sell-off.
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