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Vail Resorts Stock Down on Q4 Earnings Miss, Revenues Top
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Vail Resorts, Inc. (MTN - Free Report) reported mixed fourth-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Revenues declined on a year-over-year basis and the adjusted loss widened from the prior-year quarter’s levels.
Following the results, Vail Resorts’ shares dropped 0.5% in the after-hours trading session on Sept. 26.
During the quarter, its reported EBITDA declined year over year due to the underperformance of the Australian winter business. Snowfall at Australian resorts fell 28% from the prior year’s levels and was 44% below the 10-year average, leading to an 18% drop in skier visitation. Although the North American summer mountain business did not meet expectations, it achieved 15% revenue growth with fewer weather and construction-related disruptions.
Earnings & Revenues
In the quarter under review, the company reported a loss of $4.67 per share, wider than the Zacks Consensus Estimate of a loss of $4.28. In the prior-year quarter, the company had registered a loss of $3.35.
Quarterly net revenues amounted to $265.4 million, surpassing the consensus mark of $262.4 million. However, the top line dropped 1.6% on a year-over-year basis.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Vail Resorts reports through two segments — Mountain and Lodging.
Mountain: This segment generated net revenues of $175.9 million in the quarter under review, down 2.8% year over year. The figure compares with our model’s projection of $176.4 million. During the quarter, revenues from dining inched up 1.6% year over year to $18 million. Revenues from retail/rental declined 7.2% year over year to $24.3 million. That said, revenues from ski school and lift fell 2.8% and 17.8% year over year, respectively.
The segment’s reported EBITDA loss amounted to $117.3 million in the fiscal fourth quarter compared with $91.1 million reported in the year-ago quarter. Operating expenses totaled $292.9 million, up 7.6% year over year.
Lodging: Total net revenues in the reported quarter were $89.4 million, up 0.9% year over year. The figure compares with our projection of $87.1 million. During the fiscal quarter, the segment’s EBITDA was $2.8 million compared with $4.3 million reported in the year-ago quarter.
During the fiscal fourth quarter, operating expenses in the segment increased 2.7% year over year to $86.7 million.
Operating Results
Vail Resorts reported a consolidated EBITDA loss of $115.9 million in the quarter, up from $88 million reported in the year-ago quarter. Operating expenses totaled $380.9 million compared with $357.8 million reported in the year-ago quarter.
Balance Sheet
Cash and cash equivalents as of July 31, 2024, totaled $322.8 million compared with $563 million reported in the prior-year quarter.
Net long-term debt amounted to $2.72 billion at the end of the fiscal fourth quarter compared with $2.75 billion as of July 31, 2023.
As of July 31, the company had total cash and revolver availability of approximately $946 million. This includes $323 million cash in hand, $408 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $215 million of revolver availability under the Whistler Credit Agreement.
Fiscal 2024 Highlights
Adjusted earnings per share in fiscal 2024 came in at $6.07 compared with $8.74 reported in the previous fiscal.
Total net revenues in the fiscal 2024 came in at $2,885.2 million compared with $2,889.4 million in the fiscal 2023.
Total reported EBITDA in the fiscal 2024 totaled $826.6 million compared with $833.1 million reported in the prior fiscal.
Other Updates
Season-to-date (through Sept. 20, 2024), the company stated that Pass product sales dropped approximately 3% in units and increased nearly 3% in sales dollars compared with the prior-year period’s (through Sept. 22, 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.
Unit performance remains steady across both destination and local guest segments. The Epic Day Pass products saw slight unit growth, supported by strong renewals from pass holders. As the season passes, sales approach their final phase. The company expects December 2024 growth rates to align closely with those recorded in September 2024.
Fiscal 2025 Guidance
In the fiscal 2025, net income (attributable to Vail Resorts) is now estimated in the range of $224-$300 million compared with $230.4 million reported in the fiscal 2024. Total reported EBITDA is expected between $827 million and $889 million. Resorts reported EBITDA is expected in the range of $838-$894 million. Resorts reported EBITDA margin is anticipated to be nearly between 28.6% and 29.1%, using the midpoint of the guidance.
Zacks Rank and Stocks to Consider
Currently, Vail Resorts carries a Zacks Rank #3 (Hold).
DDI has a trailing four-quarter earnings surprise of 22.1%, on average. The stock has increased 62.9% in the past year. The Zacks Consensus Estimate for DDI’s 2024 sales and earnings per share (EPS) indicates an increase of 12.6% and 15.8%, respectively, from the year-ago levels.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) currently flaunts a Zacks Rank of 1. NCLH has a trailing four-quarter earnings surprise of 5.7%, on average. The stock has moved up 24.4% in the past year.
The Zacks Consensus Estimate for NCLH’s 2024 sales and EPS indicates an increase of 9.8% and 125.7%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently carries a Zacks Rank #2 (Buy). RCL has a trailing four-quarter earnings surprise of 18.5%, on average. The stock has gained 94.2% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates growth of 18.1% and 70%, respectively, from the year-ago levels.
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Vail Resorts Stock Down on Q4 Earnings Miss, Revenues Top
Vail Resorts, Inc. (MTN - Free Report) reported mixed fourth-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. Revenues declined on a year-over-year basis and the adjusted loss widened from the prior-year quarter’s levels.
Following the results, Vail Resorts’ shares dropped 0.5% in the after-hours trading session on Sept. 26.
During the quarter, its reported EBITDA declined year over year due to the underperformance of the Australian winter business. Snowfall at Australian resorts fell 28% from the prior year’s levels and was 44% below the 10-year average, leading to an 18% drop in skier visitation. Although the North American summer mountain business did not meet expectations, it achieved 15% revenue growth with fewer weather and construction-related disruptions.
Earnings & Revenues
In the quarter under review, the company reported a loss of $4.67 per share, wider than the Zacks Consensus Estimate of a loss of $4.28. In the prior-year quarter, the company had registered a loss of $3.35.
See Zacks Earnings Calendar to stay ahead of market-making news.
Quarterly net revenues amounted to $265.4 million, surpassing the consensus mark of $262.4 million. However, the top line dropped 1.6% on a year-over-year basis.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Vail Resorts, Inc. price-consensus-eps-surprise-chart | Vail Resorts, Inc. Quote
Segment Results
Vail Resorts reports through two segments — Mountain and Lodging.
Mountain: This segment generated net revenues of $175.9 million in the quarter under review, down 2.8% year over year. The figure compares with our model’s projection of $176.4 million. During the quarter, revenues from dining inched up 1.6% year over year to $18 million. Revenues from retail/rental declined 7.2% year over year to $24.3 million. That said, revenues from ski school and lift fell 2.8% and 17.8% year over year, respectively.
The segment’s reported EBITDA loss amounted to $117.3 million in the fiscal fourth quarter compared with $91.1 million reported in the year-ago quarter. Operating expenses totaled $292.9 million, up 7.6% year over year.
Lodging: Total net revenues in the reported quarter were $89.4 million, up 0.9% year over year. The figure compares with our projection of $87.1 million. During the fiscal quarter, the segment’s EBITDA was $2.8 million compared with $4.3 million reported in the year-ago quarter.
During the fiscal fourth quarter, operating expenses in the segment increased 2.7% year over year to $86.7 million.
Operating Results
Vail Resorts reported a consolidated EBITDA loss of $115.9 million in the quarter, up from $88 million reported in the year-ago quarter. Operating expenses totaled $380.9 million compared with $357.8 million reported in the year-ago quarter.
Balance Sheet
Cash and cash equivalents as of July 31, 2024, totaled $322.8 million compared with $563 million reported in the prior-year quarter.
Net long-term debt amounted to $2.72 billion at the end of the fiscal fourth quarter compared with $2.75 billion as of July 31, 2023.
As of July 31, the company had total cash and revolver availability of approximately $946 million. This includes $323 million cash in hand, $408 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $215 million of revolver availability under the Whistler Credit Agreement.
Fiscal 2024 Highlights
Adjusted earnings per share in fiscal 2024 came in at $6.07 compared with $8.74 reported in the previous fiscal.
Total net revenues in the fiscal 2024 came in at $2,885.2 million compared with $2,889.4 million in the fiscal 2023.
Total reported EBITDA in the fiscal 2024 totaled $826.6 million compared with $833.1 million reported in the prior fiscal.
Other Updates
Season-to-date (through Sept. 20, 2024), the company stated that Pass product sales dropped approximately 3% in units and increased nearly 3% in sales dollars compared with the prior-year period’s (through Sept. 22, 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.
Unit performance remains steady across both destination and local guest segments. The Epic Day Pass products saw slight unit growth, supported by strong renewals from pass holders. As the season passes, sales approach their final phase. The company expects December 2024 growth rates to align closely with those recorded in September 2024.
Fiscal 2025 Guidance
In the fiscal 2025, net income (attributable to Vail Resorts) is now estimated in the range of $224-$300 million compared with $230.4 million reported in the fiscal 2024. Total reported EBITDA is expected between $827 million and $889 million. Resorts reported EBITDA is expected in the range of $838-$894 million. Resorts reported EBITDA margin is anticipated to be nearly between 28.6% and 29.1%, using the midpoint of the guidance.
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:
DoubleDown Interactive Co., Ltd. (DDI - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DDI has a trailing four-quarter earnings surprise of 22.1%, on average. The stock has increased 62.9% in the past year. The Zacks Consensus Estimate for DDI’s 2024 sales and earnings per share (EPS) indicates an increase of 12.6% and 15.8%, respectively, from the year-ago levels.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) currently flaunts a Zacks Rank of 1. NCLH has a trailing four-quarter earnings surprise of 5.7%, on average. The stock has moved up 24.4% in the past year.
The Zacks Consensus Estimate for NCLH’s 2024 sales and EPS indicates an increase of 9.8% and 125.7%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently carries a Zacks Rank #2 (Buy). RCL has a trailing four-quarter earnings surprise of 18.5%, on average. The stock has gained 94.2% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates growth of 18.1% and 70%, respectively, from the year-ago levels.