UPDATE 2-New Oriental Education 2011 view disappoints; shrs fall

* Q4 $0.15/ADS vs. $0.07 year ago

* Sees Q1 rev $188.2 mln-$197.2 mln

* Sees profit growth of 25 pct or higher in FY 2010

* Sees margin compression of about a percent

* Shares down as much as 4 pct (Adds details, analyst comments, updates share movement)

By Megha Mandavia

BANGALORE, July 19 (Reuters) - China's New Oriental Education & Technology Group Inc's (EDU.N) fourth quarter profit more than doubled, helped by a rise in student enrollments, but forecast 2011 revenue just in line with market expectations

However, shares fell as much as 4 percent since the market was expecting a better outlook.

"We are targeting a profit growth of 25 percent or higher in this new fiscal year, not withstanding our aggressive expansion plans, Chief Financial Officer Louis T. Hsieh said on a conference call with analysts.

The company also said it was targeting a revenue growth of 25 percent to 30 percent.

"People were probably expecting a higher growth but when they gave the guidance, they guided in line," analyst Ingrid Yin of Brean Murray, Carpet & Co said.

The company, which offers English language instruction and test preparation courses in China, said it would also see a margin compression of about a percent as it plans business expansion.

Analyst Ella Ji of Oppenheimer & Co said that with more and more Chinese education companies going public, competition in the market will increase as these companies will be financially stronger and would be able to expand more aggressively.

Ji, who believes that teacher cost is going to increase, also added that New Oriental was expanding right now to gain market share in tier two and tier three cities, ahead of competition.

Driven by the growing demand for education services in China, more private education companies in China are planning to go public outside China, increasing competition for New Oriental.

Chinese education company Global Education & Technology Group, which provides training in foreign languages, is planning an initial public share offering to raise about $100 million by the end of the year. [ID:nHKV002390]

HIGH ENROLLMENT DRIVES Q4

For the fourth-quarter ended May 31, 2010, the company posted earnings of $5.8 million, or 15 cents per American Depositary Share (ADS), compared with $2.6 million, or 7 cents per ADS.

Excluding certain items, the company posted earnings of 23 cents per ADS. Revenue rose 46 percent to $86.6 million.

Analysts on average were expecting earnings of 13 cents a share, on revenue of $79 million, according to Thomson Reuters I/B/E/S.

The company said it expects first-quarter revenue to range between $188.2 million and $197.2 million.

Total student enrollment in language training and test preparation courses rose 32 percent to about 437,200.

Shares of the company were trading down 3 percent at $94.33 in midday trade Monday on the New York Stock Exchange. (Reporting by Amulya Nagaraj, Megha Mandavia in Bangalore; Editing by Vyas Mohan)