Vail Resorts' shares fall 7% after "yard sale" report
AInvestMonday, Mar 11, 2024 4:28 pm ET
1min read

Vail Resorts, Inc. (MTN), a leading global operator of premier mountain resorts, recently reported its second-quarter (Jan) earnings results. The company missed top and bottom line expectations which led it to cut its full year outlook. Shares fell 6% in reaction to the news, although we would note volume remains light. It may raise some questions about the consumer as Travel and Entertainment had been one of the best performing areas over the past couple of quarters. 

Vail Resorts, a leading global mountain resort operator, reported Q2 earnings for fiscal year 2024, with $5.76 per share, $0.28 worse than consensus of $6.04. Revenue fell 2.2% year-over-year to $1.08 billion, compared to the $1.15 billion consensus. The company also announced a 9.7% decrease in total skier visits compared to the prior year season-to-date period.

Resort Reported EBITDA for the second quarter of fiscal 2024 was $425.0 million, including $2.1 million of acquisition related expenses. Net income attributable to Vail Resorts, Inc. was $219.3 million for the second fiscal quarter of 2024 compared to net income attributable to Vail Resorts, Inc. of $208.7 million in the same period in the prior year.

The company's Board of Directors approved an 8% increase in the quarterly cash dividend to $2.22 per share, beginning with the dividend payable on April 11, 2024, to shareholders of record as of March 28, 2024.

Vail Resorts lowered its guidance for fiscal 2024 due to the season-to-date underperformance. Net income attributable to Vail Resorts, Inc. is expected to be between $270 million and $325 million, and Resort Reported EBITDA is expected to be between $849 million and $885 million, including an estimated $4 million of acquisition related expenses specific to Crans-Montana. The company's Resort EBITDA Margin for fiscal 2024 is estimated to be approximately 29.6%, using the midpoint of the guidance range.

The updated outlook for fiscal 2024 assumes a continuation of the current economic environment and normal weather conditions for the remainder of the 2023/2024 North American and European ski season and for the 2024 Australian ski season. 

In conclusion, Vail Resorts has reported mixed Q2 earnings for fiscal year 2024, with a decrease in total skier visits and a 9.7% drop in total skier visits compared to the prior year season-to-date period. The company has lowered its guidance for fiscal 2024 due to the season-to-date underperformance, but expects improved performance for the remainder of the season. With an 8% increase in the quarterly cash dividend and a focus on normal weather conditions and the current economic environment, Vail Resorts is navigating the challenges of the ski industry and looking forward to a promising future.


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