New Oriental Education & Technology Group Inc. (NYSE:EDU) Q2 2020 Earnings Conference Call - Final Transcript
Jan 20, 2020 • 08:00 am ET
via our online lab forecasting technology, if the learning centers operations remain suspended after the Chinese New Year. Please note that classes in the cities except Wuhan have not been adjusted or suspended. The health and safety of our students is our top priority and we will continue to closely monitor the situation and co-operate with the relevant authorities. Also note, we have taken the impact from the conditions in Wuhan into consideration in our third quarter's guidance. The impact is immaterial based on our current estimation.
Finally, the recent RMB depreciation against the US dollar might cause impacts on our earnings in dollar terms for the third quarter of 2020.
Finally, I would like to emphasize that we have great confidence in fundamentals of our business, which we believe will continue to remain strong. As we continue to execute our Optimize Market strategy, we are certain that New Oriental will continue to capture the sustainable growth opportunities in the market and deliver long-term value for our shareholders. Looking at the near-term and our expectations for the next quarter. We expect total net revenues in the third quarter of fiscal year 2020 to be in the range of $983 million to $1,006.4 million, representing year-over-year growth in the range of 23% to 26%.
If not taking into consideration the impact of the potential change in exchange rate between RMB and US dollars, the projected revenue growth rate in our functional RMB -- in our functional currency RMB is expected to be in the range of 26% to 29% for the third quarter of fiscal year for 2020. The exchange rate, we used to calculate expected the revenue for the third quarter for fiscal year 2020 is 6.95. The historical exchange rates used to calculate revenues for the third quarter of fiscal years 2019 was 6.81. I must mention that this expectations reflect New Oriental's current and preliminary view, which is subject to change.
At this point, I will take your questions. Operator, please open the call for this. Thank you.