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Vail Resorts (MTN) Q3 Earnings & Revenues Miss Estimates

Vail Resorts, Inc. MTN reported third-quarter fiscal 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. Earnings missed the consensus estimate for the third straight quarter. Following the announcement, shares of the company declined 2.1% during the after-hours trading session on Jun 8.

Kirsten Lynch, chief executive officer of Vail Resorts, stated, “We are pleased with our overall results for the quarter and for the 2022/2023 North American ski season, with strong growth in visitation and spending versus the prior year.”

Earnings & Revenues

In the quarter under review, the company reported adjusted earnings of $8.18 per share, lagging the Zacks Consensus Estimate of $8.88. In the prior-year quarter, the company reported adjusted earnings of $9.16 per share.

Quarterly revenues amounted to $1,238.4 million, missing the consensus mark of $1,246 million. The top line rose 5.2% on a year-over-year basis. Strong guest visitation, robust pass product sales and an increase in guest spending added to the upside.

Segment Results

Vail Resorts reports through two segments — Mountain and Lodging.

The Mountain segment generated revenues of $1,144.7 million in the quarter under review, up 5.5% year over year. During the quarter, revenues from dining and retail/rental rose 27.4% and 6.7% year over year, respectively. Revenues from lift declined 0.7%, whereas revenues from ski school increased 20% year over year.

The segment’s reported EBITDA amounted to $606.9 million in the fiscal third quarter compared with $596 million reported in the prior-year quarter. Operating expenses in the Mountain segment totaled $537.9 million, up 10% year over year.

Lodging’s net revenues (excluding payroll cost reimbursements) in the reported quarter were $93.5 million, up 1.8% year over year, primarily due to robust dining revenues. During the quarter, the segment’s EBITDA came in at $16.4 million compared with $14.5 million reported in the year-ago quarter.

During the quarter, operating expenses in the Lodging segment declined 0.3% year over year to $77.2 million.

Vail Resorts, Inc. Price, Consensus and EPS Surprise

Vail Resorts, Inc. price-consensus-eps-surprise-chart | Vail Resorts, Inc. Quote

Operating Results

Vail Resorts reported EBITDA of $621.9 million in the quarter compared with $609.2 million reported in the prior-year quarter. Operating expenses totaled $616.7 million, up 8.6% year over year.

Balance Sheet

Cash and cash equivalents as of Apr 30, 2023, totaled $896.1 million compared with $1,401.2 million in the year-ago period.

Net long-term debt amounted to $2,773.7 million at the end of the quarter, compared with $2,687.5 million at the end of the prior-year quarter.

As of Apr 30, 2023, the company had total cash and revolver availability of approximately $1.5 billion. This includes $896 million cash in hand, $420 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $208 million of revolver availability under the Whistler Credit Agreement.

Fiscal 2023 Guidance

In fiscal 2023, net income (attributable to Vail Resorts) is estimated in the range of $251-$283 million compared with the prior estimate of $282-$328 million. EBITDA is expected in the range of $835-$853 million compared with the prior estimate of $831-$859 million.

Zacks Rank and Stocks to Consider

Currently, Vail Resorts carries a Zacks Rank #3 (Hold).

Here we present some better-ranked stocks from the Zacks Consumer Discretionary sector.

Royal Caribbean Cruises Ltd. RCL presently sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 26.4%, on average. The stock has increased 58.3% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) indicates growth of 48.3% and 160.5%, respectively, from the year-ago period’s levels.

Skechers U.S.A., Inc. SKX currently flaunts a Zacks Rank #1. SKX has a trailing four-quarter earnings surprise of 18.8%, on average. The stock has improved 26% in the past year.

The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates growth of 7.8% and 31.9%, respectively, from the year-ago period’s levels.

Crocs, Inc. CROX currently carries a Zacks Rank #2 (Buy). CROX has a trailing four-quarter earnings surprise of 19.6%, on average. The stock has gained 24.5% in the past six months.

The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 13.2% and 5.7%, respectively, from the year-ago period’s levels.

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