New Oriental Education Slides on Weak Q1 2015 Revenue Outlook

Despite topping Q4 estimates, shares of New Oriental Education get hammered on Tuesday, weighed down by a lower-than-expected revenue outlook for Q1 2015. For Q1 2015, net revenue is expected to be in the range of $412 Mln to $427.5 Mln, representing a lower-than-normal year-over-year growth in the range of 6% to 10%. CEO Michael Yu cites the anticipated impact from recent margin-boosting efforts, along with macroeconomic factors for the lowered guidance. Shares of New Oriental Education are currently 12 percent lower, changing hands at $21.27.