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Vail Resorts (MTN) Q3 Earnings Miss Estimates, Stock Declines
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Vail Resorts, Inc. (MTN - Free Report) reported dismal third-quarter fiscal 2024 results, with earnings and net revenues missing the Zacks Consensus Estimate. The top and the bottom line rose year over year.
During the quarter, the company faced unfavorable conditions at North American resorts for much of the 2023/2024 ski season. Significant weather-related challenges, with approximately 28% lower snowfall (year over year) for the full winter season across western North American resorts and limited natural snow and variable temperatures at Eastern U.S. resorts, added to the negatives.
Total skier visits for the 2023/2024 North American and European ski season declined 7.7% year over year. The downside was caused by a combination of unfavorable conditions and broader industry normalization post-COVID scenario. While pass product visitation met expectations, lift ticket visitation, particularly at Whistler Blackcomb, fell short of historical spring levels.
Following the results, Vail Resorts’ shares declined 6.2% in the after-hours trading session on Jun 6.
Earnings & Revenues
In the quarter under review, the company reported earnings of $9.54 per share, missing the Zacks Consensus Estimate of $9.94 by 4%. In the year-ago quarter, the company reported earnings of $8.18 per share.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Quarterly net revenues amounted to $1.28 billion, missing the consensus mark of $1.31 billion. The top line increased 3.6% on a year-over-year basis.
Segment Results
Vail Resorts reports through two segments — Mountain and Lodging.
Mountain: This segment generated net revenues of $1.19 billion in the quarter under review, up 4.5% year over year. The figure compares with our model’s projection of $1.20 billion. During the quarter, revenues from dining increased 7.7% year over year to $109.5 million. Revenues from retail/rental declined 8.7% year over year to $123.3 million. That said, revenues from ski school and lift increased year over year by 11.1% and 5%, respectively.
The segment’s reported EBITDA amounted to $638.6 million in the fiscal third quarter, up 5.2% from $606.9 million reported in the year-ago quarter. Operating expenses totaled $558.6 million, up 3.8% year over year.
Lodging: Total net revenues in the reported quarter were $82.2 million, down 6.8% year over year. The figure compares with our projection of $109 million. During the fiscal quarter, the segment’s EBITDA was $15.8 million compared with $16.4 million reported in the year-ago quarter.
During the fiscal third quarter, operating expenses in the segment declined 7.6% year over year to $71.3 million.
Operating Results
Vail Resorts reported consolidated EBITDA of $653.3 million in the quarter, up from $621.9 million reported in the year-ago quarter. Operating expenses totaled $631.1 million compared with $616.7 million reported in the year-ago quarter.
Balance Sheet
Cash and cash equivalents as of Apr 30, 2024, totaled $705.4 million compared with $896 million reported in the prior-year quarter.
Net long-term debt amounted to $2.7 billion at the end of the fiscal third quarter compared with $2.77 billion as of Apr 30, 2023.
As of Apr 30, 2024, the company had total cash and revolver availability of approximately $1.3 billion. This includes $705 million cash in hand, $409 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $216 million of revolver availability under the Whistler Credit Agreement.
Other Updates
Season-to-date (through May 28, 2024), the company stated that Pass product sales dropped approximately 5% in units and increased nearly 1% in sales dollars compared with the prior-year period’s (through May 30, 2023) levels for the 2024/2025 North American ski season. Although the company stated benefits from an 8% price increase (relative to the 2022/23 season), units declined owing to a reduction in new pass holders.
The company reported strong renewal among long-term pass holders, though lower-tenured pass holders showed lower spring renewal rates, possibly delaying decisions until fall. The company reported positive migration for renewing pass holders, with modest growth in Epic Day Pass products.
Lowered Fiscal 2024 Guidance
In the fiscal 2024, net income (attributable to Vail Resorts) is now estimated in the range of $244-$270 million compared with the prior expected range of $296-$343 million. Total reported EBITDA is expected between $825 million and $845 million compared with the previously-expected range of $847-$889 million.
Zacks Rank and Stocks to Consider
Currently, Vail Resorts carries a Zacks Rank #3 (Hold).
STRA has a trailing four-quarter earnings surprise of 36.2%, on average. The stock has surged 42.7% in the past year. The Zacks Consensus Estimate for STRA’s 2024 sales and earnings per share (EPS) indicates an increase of 6.4% and 33.3%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank of 1. RCL has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has rallied 69.8% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS calls for growth of 16.8% and 63.7%, respectively, from the year-ago levels.
Hasbro, Inc. (HAS - Free Report) presently flaunts a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 17.5%, on average. The stock has gained 14.4% in the year-to-date period.
The Zacks Consensus Estimate for HAS’ 2025 sales and EPS suggests an improvement of 4% and 14%, respectively, from the year-ago levels.
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Vail Resorts (MTN) Q3 Earnings Miss Estimates, Stock Declines
Vail Resorts, Inc. (MTN - Free Report) reported dismal third-quarter fiscal 2024 results, with earnings and net revenues missing the Zacks Consensus Estimate. The top and the bottom line rose year over year.
During the quarter, the company faced unfavorable conditions at North American resorts for much of the 2023/2024 ski season. Significant weather-related challenges, with approximately 28% lower snowfall (year over year) for the full winter season across western North American resorts and limited natural snow and variable temperatures at Eastern U.S. resorts, added to the negatives.
Total skier visits for the 2023/2024 North American and European ski season declined 7.7% year over year. The downside was caused by a combination of unfavorable conditions and broader industry normalization post-COVID scenario. While pass product visitation met expectations, lift ticket visitation, particularly at Whistler Blackcomb, fell short of historical spring levels.
Following the results, Vail Resorts’ shares declined 6.2% in the after-hours trading session on Jun 6.
Earnings & Revenues
In the quarter under review, the company reported earnings of $9.54 per share, missing the Zacks Consensus Estimate of $9.94 by 4%. In the year-ago quarter, the company reported earnings of $8.18 per share.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Vail Resorts, Inc. price-consensus-eps-surprise-chart | Vail Resorts, Inc. Quote
Quarterly net revenues amounted to $1.28 billion, missing the consensus mark of $1.31 billion. The top line increased 3.6% on a year-over-year basis.
Segment Results
Vail Resorts reports through two segments — Mountain and Lodging.
Mountain: This segment generated net revenues of $1.19 billion in the quarter under review, up 4.5% year over year. The figure compares with our model’s projection of $1.20 billion. During the quarter, revenues from dining increased 7.7% year over year to $109.5 million. Revenues from retail/rental declined 8.7% year over year to $123.3 million. That said, revenues from ski school and lift increased year over year by 11.1% and 5%, respectively.
The segment’s reported EBITDA amounted to $638.6 million in the fiscal third quarter, up 5.2% from $606.9 million reported in the year-ago quarter. Operating expenses totaled $558.6 million, up 3.8% year over year.
Lodging: Total net revenues in the reported quarter were $82.2 million, down 6.8% year over year. The figure compares with our projection of $109 million. During the fiscal quarter, the segment’s EBITDA was $15.8 million compared with $16.4 million reported in the year-ago quarter.
During the fiscal third quarter, operating expenses in the segment declined 7.6% year over year to $71.3 million.
Operating Results
Vail Resorts reported consolidated EBITDA of $653.3 million in the quarter, up from $621.9 million reported in the year-ago quarter. Operating expenses totaled $631.1 million compared with $616.7 million reported in the year-ago quarter.
Balance Sheet
Cash and cash equivalents as of Apr 30, 2024, totaled $705.4 million compared with $896 million reported in the prior-year quarter.
Net long-term debt amounted to $2.7 billion at the end of the fiscal third quarter compared with $2.77 billion as of Apr 30, 2023.
As of Apr 30, 2024, the company had total cash and revolver availability of approximately $1.3 billion. This includes $705 million cash in hand, $409 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $216 million of revolver availability under the Whistler Credit Agreement.
Other Updates
Season-to-date (through May 28, 2024), the company stated that Pass product sales dropped approximately 5% in units and increased nearly 1% in sales dollars compared with the prior-year period’s (through May 30, 2023) levels for the 2024/2025 North American ski season. Although the company stated benefits from an 8% price increase (relative to the 2022/23 season), units declined owing to a reduction in new pass holders.
The company reported strong renewal among long-term pass holders, though lower-tenured pass holders showed lower spring renewal rates, possibly delaying decisions until fall. The company reported positive migration for renewing pass holders, with modest growth in Epic Day Pass products.
Lowered Fiscal 2024 Guidance
In the fiscal 2024, net income (attributable to Vail Resorts) is now estimated in the range of $244-$270 million compared with the prior expected range of $296-$343 million. Total reported EBITDA is expected between $825 million and $845 million compared with the previously-expected range of $847-$889 million.
Zacks Rank and Stocks to Consider
Currently, Vail Resorts carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector include
Strategic Education, Inc. (STRA - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
STRA has a trailing four-quarter earnings surprise of 36.2%, on average. The stock has surged 42.7% in the past year. The Zacks Consensus Estimate for STRA’s 2024 sales and earnings per share (EPS) indicates an increase of 6.4% and 33.3%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank of 1. RCL has a trailing four-quarter earnings surprise of 18.3%, on average. The stock has rallied 69.8% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS calls for growth of 16.8% and 63.7%, respectively, from the year-ago levels.
Hasbro, Inc. (HAS - Free Report) presently flaunts a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 17.5%, on average. The stock has gained 14.4% in the year-to-date period.
The Zacks Consensus Estimate for HAS’ 2025 sales and EPS suggests an improvement of 4% and 14%, respectively, from the year-ago levels.