Wall Street Opens Lower Tuesday
- By Omar Venerio
U.S. stocks were in negative territory on Tuesday, after the market was closed yesterday because of Martin Luther King Jr. holiday. The Dow Jones Industrial Average fell more than 150 points to 24,557, the S&P 500 index lost 0.87% to 2,648, and the Nasdaq Composite Index advanced 1.08% to 7,079.
Shares of New Oriental Education & Technology Group Inc. (EDU) jumped more than 7% in Tuesday, after the company announced second-quarter results. It reported revenue of $597.07 million, reflecting 27.8% year-over-year growth and beating estimations by $17.82 million. Net revenues from educational programs and services were $543.6 million, representing a 28.6% increase year-over-year. Earnings were 14 cents per share, also beating estimates by 26 cents.
Warning! GuruFocus has detected 4 Warning Signs with EDU. Click here to check it out.
The intrinsic value of EDU
Michael Minhong Yu, the company?s executive chairman, explained that revenue growth "was driven largely by our key business unit, K-12 all-subjects after-school tutoring, which recorded a remarkable year-over-year revenue growth of approximately 38%, or 44% if computed in Renminbi, reflecting a combination of a solid high-quality product portfolio and a sustained market demand. Furthermore, our U-Can middle and high school all-subjects after-school tutoring business grew by approximately 39%, or 46% if computed in Renminbi, and the POP Kids program achieved a growth of approximately 35%, or 41% if computed in Renminbi."
Gainers
o Starbucks Corp. (SBUX)
o CME Group Inc. (CME)
o Chipotle Mexican Grill Inc. (CMG)
o Ventas Inc. (VTR)
o NRG Energy Inc. (NRG)
Losers
o Altria Group Inc. (MO)
o Gap Inc. (GPS)
o Micron Technology Inc. (MU)
o General Electric Co. (GE)
o Halliburton Co. (HAL)
Global markets
The main European stock markets traded lower. The U.K.'s FTSE 100 declined 1.27%, France's CAC 40 dipped 0.87%, Germany's Dax closed 0.87% down and Spain's Ibex 35 lost 0.50%.
In Asia, Japan's Nikkei 225 fell 0.47%, India's BSE Sensex lost 0.37%, Hong Kong's Hang Seng retreated0.70% and China's Shanghai Composite slid 1.18%.
Disclosure: The author holds no positions in any stocks mentioned.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 4 Warning Signs with EDU. Click here to check it out.
The intrinsic value of EDU
