Morgan Stanley: New Oriental's second quarter revenue beats expectations, but profits and guidance fall short of expectations

According to Morgan Stanley's research report, New Oriental (EDU.N) achieved a 19% year-on-year increase in total revenue for the second quarter of the 2025 fiscal year, which is 2% higher than market expectations; core revenue increased by 31.3% year-on-year, surpassing the previous guidance of 25% to 28% year-on-year. As for the outlook for the third quarter of the 2025 fiscal year, core revenue is expected to increase by 18% to 21% year-on-year (in USD) or 20% to 23% year-on-year (in RMB), which is lower than the full-year guidance of 30% year-on-year growth. Morgan Stanley has set a target price of $83 for New Oriental's US stocks and has given it a buy rating.