The Chinese private education services provider boasted a 14% gain in quarterly earnings this morning led by increased enrollment. Revenue forecasts are estimated between $342 and $356 million. Revenue rose 41% to $193 million, higher than analysts expectations of $182-189 million. Along with increased revenues, student enrollment increased by 7.7% in this quarter and have increased 16% since last year.
Analysts remain bullish on EDU after this quarter’s earnings with Wells Fargo setting an outperform rating to shares and Piper Jaffray’s price target of $36-37.00.
EDU’s business model is based off of demand for English lessons in China. Classes range from personalized VIP programs to afterschool tutoring across different subjects.
David Cornes holds a degree in economics from the University of Montana.