China Distance Education Hldgs Ltd (ADR)(NYSE:DL) Education Tumbles 16%

0

China Distance Education Hldgs Ltd (ADR)(NYSE:DL) turned negative and sank to a new 2-year low even after the provider of online education in China reported higher-than-estimated earnings and revenue in the fiscal third quarter, and unveiled a stock buyback program. Shares are now down 15% at $9.78 and earlier sank to $9.50 – the lowest since July 2013. DL jumped as much as 14% in Tuesday’s after hours session, when it reported its results.

Net income decreased slightly by 0.3% to $5.2 million, or $0.146 per diluted ADS, in the three months ended June 30, from $5.3 million, or $0.147 per diluted ADS, a year earlier.  Non-GAAP net income per ADS was $0.160, above the $0.04 average estimate of 2 analysts polled by Capital IQ.

Q3 revenue increased 15.3% to $28.8 million from $25.0 million in the prior year period, exceeding the company’s prior guidance range of $27.5 million to $28.7 million. Also on Tuesday, the company announced a share repurchase program to buy up to $10 million of its issued and outstanding American Depository Shares (“ADSs”) during a one-year period from August 18, 2015 to August 17, 2016.

Moving forward, China Distance Education Hldgs Ltd (ADR)(NYSE:DL) expects to generate Q4 revenue in the range of $35.3 million to $37.0 million, representing year-over-year growth of approximately 0% to 5%. That falls behind the Wall Street consensus of $45.2 million.

1 Chart Pattern Every Investor Should Know

This little-known pattern preceded moves of 578% in ARWR, 562% in LCI, 513% in ICPT, 439% in EGRX, 408% in ADDUS and more...

Click Here to See This Now.

(Visited 84 times, 1 visits today)