Vail Resorts, Inc. (MTN - Free Report) fourth-quarter fiscal 2023 results were hurt by bleak performance of the Mountain segment. However, the company reported solid season pass sales for the upcoming 2023/24 North American ski season.
MTN reported fourth-quarter fiscal 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Nonetheless, the top line increased on a year-over-year basis. The bottom line declined from the prior-year quarter’s figure.
Mountain Segment’s Poor Performance Hurts
The Mountain segment generated revenues of $181 million in the quarter under review, down 2% year over year. We projected the metric to be $207.7 million. During the quarter, revenues from dining rose 2.2% year over year to $17.7 million.
Revenues from Ski school improved 6.1% year over year to $9.8 million. Lift and retail/rental revenues decreased 1.5% and 12.9%, respectively, on a year-over-year basis. Our model predicted revenues from Ski school, lift and retail/rental to gain 3%, 16.9% and 3.3% year over year, respectively.
Segmental EBITDA amounted to ($91.1) million in the quarter under discussion compared with ($62.4) million reported in the prior-year quarter. Operating expenses totaled $272.2 million, up 10.2% year over year. Our model suggested segmental EBITDA to be ($84.4) million.
An escalation in the Mountain segment’s expenses also affected the company’s performance. Total expenses in this segment jumped 10.2% year over year to $272.2 million owing to a sharp rise in labor and labor-related benefits as well as resort related fees.
Season-to-date (through Sep 22, 2023), management stated that pass product sales had climbed approximately 7% and 11%, respectively, in units and sales dollars compared with the year-ago period’s (through Sep 23, 2022) levels. It reported strong unit growth concerning its renewing pass holders in destination markets. Also, it noted benefits from an 8% price hike (relative to the 2022/23 season).
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:
Live Nation Entertainment, Inc. (LYV - Free Report) sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 34.6% on average. Shares of LYV have increased 4.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates rises of 21% and 57.8%, respectively, from the year-ago period’s levels.
Hilton Worldwide Holdings Inc. (HLT - Free Report) currently carries a Zacks Rank #2 (Buy). HLT has a trailing four-quarter earnings surprise of 12.5% on average. The stock has gained 18.5% in the past year.
The Zacks Consensus Estimate for HLT’s 2023 sales and EPS suggests improvements of 14.8% and 23.7%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) currently carries a Zacks Rank #2. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have risen 32.1% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS implies 44.5% and 117.9% growth, respectively, from the year-ago period’s levels.
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It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Vail Resorts, Inc. (MTN - Free Report) fourth-quarter fiscal 2023 results were hurt by bleak performance of the Mountain segment. However, the company reported solid season pass sales for the upcoming 2023/24 North American ski season.
MTN reported fourth-quarter fiscal 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Nonetheless, the top line increased on a year-over-year basis. The bottom line declined from the prior-year quarter’s figure.
Mountain Segment’s Poor Performance Hurts
The Mountain segment generated revenues of $181 million in the quarter under review, down 2% year over year. We projected the metric to be $207.7 million. During the quarter, revenues from dining rose 2.2% year over year to $17.7 million.
Revenues from Ski school improved 6.1% year over year to $9.8 million. Lift and retail/rental revenues decreased 1.5% and 12.9%, respectively, on a year-over-year basis. Our model predicted revenues from Ski school, lift and retail/rental to gain 3%, 16.9% and 3.3% year over year, respectively.
Segmental EBITDA amounted to ($91.1) million in the quarter under discussion compared with ($62.4) million reported in the prior-year quarter. Operating expenses totaled $272.2 million, up 10.2% year over year. Our model suggested segmental EBITDA to be ($84.4) million.
An escalation in the Mountain segment’s expenses also affected the company’s performance. Total expenses in this segment jumped 10.2% year over year to $272.2 million owing to a sharp rise in labor and labor-related benefits as well as resort related fees.
Season-to-date (through Sep 22, 2023), management stated that pass product sales had climbed approximately 7% and 11%, respectively, in units and sales dollars compared with the year-ago period’s (through Sep 23, 2022) levels. It reported strong unit growth concerning its renewing pass holders in destination markets. Also, it noted benefits from an 8% price hike (relative to the 2022/23 season).
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:
Live Nation Entertainment, Inc. (LYV - Free Report) sports a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 34.6% on average. Shares of LYV have increased 4.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates rises of 21% and 57.8%, respectively, from the year-ago period’s levels.
Hilton Worldwide Holdings Inc. (HLT - Free Report) currently carries a Zacks Rank #2 (Buy). HLT has a trailing four-quarter earnings surprise of 12.5% on average. The stock has gained 18.5% in the past year.
The Zacks Consensus Estimate for HLT’s 2023 sales and EPS suggests improvements of 14.8% and 23.7%, respectively, from the year-ago period’s levels.
OneSpaWorld Holdings Limited (OSW - Free Report) currently carries a Zacks Rank #2. OSW has a trailing four-quarter earnings surprise of 42.6% on average. Shares of OSW have risen 32.1% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS implies 44.5% and 117.9% growth, respectively, from the year-ago period’s levels.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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