Vail Resorts (NYSE:MTN) Posts Quarterly Earnings Results, Misses Expectations By $0.16 EPS

Vail Resorts (NYSE:MTN) released its earnings results on Monday. The company reported $8.81 earnings per share for the quarter, missing analysts’ consensus estimates of $8.97 by ($0.16), FiscalAI reports. The company had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.20 billion. Vail Resorts had a net margin of 5.38% and a return on equity of 21.88%. The business’s revenue was down 7.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $10.54 earnings per share.

Here are the key takeaways from Vail Resorts’ conference call:

• Vail said exceptionally weak snow conditions in the Rockies and other Western markets drove a 7% decline in quarterly resort revenue and a 9% decline in Resort EBITDA, with full-year Resort EBITDA guidance now at the bottom of the prior range.
• The company’s pass sales fell 10% and sales dollars declined 5% through the May deadline, but management emphasized that much of the weakness appears tied to delayed purchase decisions after a historically bad season rather than a structural drop in skiing intent.
• Management highlighted early success from its new commercial strategy, including higher paid-media investment, Epic Friend Tickets, and Super Advanced Lift Tickets, which helped lift-ticket visitation outperform the broader U.S. ski industry.
• Vail said guest experience remained strong despite the weather, with record guest experience scores, full staffing for the third straight season, strong seasonal employee retention, and lower injury rates per labor hour.
• The company remains on track to deliver $106 million of annualized efficiencies under its Resource Efficiency Transformation Plan and ended the quarter with $1.1 billion of liquidity, supporting continued capital spending, dividends, and opportunistic share repurchases.

Vail Resorts Price Performance

MTN opened at $133.48 on Friday. The company has a current ratio of 0.91, a quick ratio of 0.51 and a debt-to-equity ratio of 3.22. The stock has a market capitalization of $4.76 billion, a P/E ratio of 30.34, a PEG ratio of 12.69 and a beta of 0.72. The stock has a 50-day moving average price of $128.70 and a 200-day moving average price of $135.20. Vail Resorts has a 12-month low of $118.51 and a 12-month high of $172.00.

Vail Resorts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 25th will be issued a dividend of $2.22 per share. This represents a $8.88 dividend on an annualized basis and a dividend yield of 6.7%. The ex-dividend date of this dividend is Thursday, June 25th. Vail Resorts’s payout ratio is currently 201.82%.

Insider Activity at Vail Resorts

In related news, CEO Robert A. Katz acquired 37,500 shares of the company’s stock in a transaction dated Monday, March 16th. The stock was purchased at an average price of $131.81 per share, with a total value of $4,942,875.00. Following the completion of the purchase, the chief executive officer owned 285,312 shares in the company, valued at $37,606,974.72. This trade represents a 15.13% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Angela A. Korch purchased 190 shares of the business’s stock in a transaction on Monday, March 16th. The stock was purchased at an average cost of $131.85 per share, for a total transaction of $25,051.50. Following the acquisition, the chief financial officer owned 5,539 shares in the company, valued at approximately $730,317.15. The trade was a 3.55% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 1.20% of the company’s stock.

Institutional Investors Weigh In On Vail Resorts

Large investors have recently modified their holdings of the stock. BOKF NA increased its position in shares of Vail Resorts by 833.3% during the third quarter. BOKF NA now owns 168 shares of the company’s stock valued at $25,000 after buying an additional 150 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in Vail Resorts by 815.8% in the second quarter. EverSource Wealth Advisors LLC now owns 174 shares of the company’s stock worth $27,000 after buying an additional 155 shares during the period. Danske Bank A S bought a new stake in Vail Resorts during the 3rd quarter valued at approximately $30,000. Golden State Wealth Management LLC grew its holdings in shares of Vail Resorts by 83.3% during the 4th quarter. Golden State Wealth Management LLC now owns 220 shares of the company’s stock worth $29,000 after acquiring an additional 100 shares during the period. Finally, Caitong International Asset Management Co. Ltd grew its holdings in shares of Vail Resorts by 1,585.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 236 shares of the company’s stock worth $31,000 after acquiring an additional 222 shares during the period. Institutional investors own 94.90% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have commented on MTN. Stifel Nicolaus decreased their price target on shares of Vail Resorts from $172.00 to $167.00 and set a “buy” rating for the company in a research note on Tuesday. Zacks Research cut shares of Vail Resorts from a “hold” rating to a “strong sell” rating in a report on Tuesday, April 28th. Deutsche Bank Aktiengesellschaft decreased their target price on shares of Vail Resorts from $143.00 to $134.00 and set a “hold” rating for the company in a research report on Tuesday. UBS Group reaffirmed a “neutral” rating on shares of Vail Resorts in a research report on Tuesday. Finally, Morgan Stanley cut their price target on Vail Resorts from $151.00 to $147.00 and set an “equal weight” rating for the company in a research note on Thursday, March 12th. Five analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $151.45.

About Vail Resorts

Vail Resorts, Inc is a leading mountain resort company that owns and operates an integrated network of ski areas, hotels, restaurants and retail outlets. The company’s signature Epic Pass program offers skiers and snowboarders season‐long access to its portfolio of resorts, while ancillary services such as ski and snowboard schools, equipment rental and retail drive additional revenue.

Headquartered in Broomfield, Colorado, Vail Resorts was formed in 1997, building on the legacy of Vail Associates, which opened the Vail ski area in 1962.