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Why Is Vail Resorts (MTN) Down 0.4% Since Last Earnings Report?
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It has been about a month since the last earnings report for Vail Resorts (MTN - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Vail Resorts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Vail Resorts reported second-quarter fiscal 2021 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. However, both the metrics declined year over year.
In the quarter under review, the company reported earnings of $3.62 per share, against the Zacks Consensus Estimate of a loss of $2.19. In the prior-year quarter, the company had reported earnings of $5.04 per share.
Quarterly revenues were $684.7 million, which surpassed the consensus mark of $623 million. However, the top line fell 26% on a year-over-year basis. The downside was due to dismal performance by the Mountain segment and Lodging segments.
The company’s RevPAR declined 38.4% in the quarter, while ADR increased 2.9%.
Segment Results
The Mountain segment reported revenues of $641.5 million in the quarter under review, down 24.1% year over year due to limitation and restrictions on its North American operations on account of the COVID-19 outbreak. The downside can also be attributed to 11.1% decline in lift revenues. Moreover, Ski school, dining and retail/rental revenues decreased 45.1%, 58.0%, and 32.6%, respectively.
The segment’s EBITDA amounted to $283.6 million, down 24% from the prior-year quarter. Meanwhile, operating expenses at the Mountain segment totaled $186.1 million, down 29% year over year. EBITDA was impacted by coronavirus pandemic, marginally overshadowed by disciplined cost management.
Lodging net revenues in the reported quarter were $42.9 million, down 45.7% year over year primarily due to operational restrictions of North American lodging properties as a result of the pandemic. Under the segment, EBITDA declined to ($7.5) million from the prior-year quarter figure of $5.3 million.
Meanwhile, operating expenses at the Lodging segment contracted 31.5% year over year to $50.4 million.
Operating Results
Vail Resorts reported adjusted EBITDA of $274.8 million in the quarter under review compared with $373 million in the prior-year quarter. The decline was primarily due to negative impact of the coronavirus pandemic.
Resort operating expenses totaled $409.5 million, down 25% year over year. Meanwhile, total segmental operating expenses contracted 25% year over year to $411 million.
Balance Sheet
Cash and cash equivalents as Jan 31, 2021, totaled $1,301 million, up from $126.8 million in the year-ago period.
Net long-term debt amounted to $2,768 million at the end of the quarter, up from $1,817.1 million at the end of the prior-year quarter.
As of Feb 28, 2021, the company had total cash and revolver availability of approximately $2 billion. This includes $1.4 billion of cash in hand, $419 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $179 million of revolver availability under the Whistler Credit Agreement.
Fiscal 2021 Guidance
The company provided results for nine months ended Apr 30, 2021. The company anticipates net income in the range of $204 million to $247 million. Resort reported EBITDA is expected between $560 million and $600 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 51.1% due to these changes.
VGM Scores
At this time, Vail Resorts has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Vail Resorts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Vail Resorts (MTN) Down 0.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Vail Resorts (MTN - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Vail Resorts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Vail Resorts Q2 Earnings & Revenues Beat Estimates
Vail Resorts reported second-quarter fiscal 2021 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. However, both the metrics declined year over year.
In the quarter under review, the company reported earnings of $3.62 per share, against the Zacks Consensus Estimate of a loss of $2.19. In the prior-year quarter, the company had reported earnings of $5.04 per share.
Quarterly revenues were $684.7 million, which surpassed the consensus mark of $623 million. However, the top line fell 26% on a year-over-year basis. The downside was due to dismal performance by the Mountain segment and Lodging segments.
The company’s RevPAR declined 38.4% in the quarter, while ADR increased 2.9%.
Segment Results
The Mountain segment reported revenues of $641.5 million in the quarter under review, down 24.1% year over year due to limitation and restrictions on its North American operations on account of the COVID-19 outbreak. The downside can also be attributed to 11.1% decline in lift revenues. Moreover, Ski school, dining and retail/rental revenues decreased 45.1%, 58.0%, and 32.6%, respectively.
The segment’s EBITDA amounted to $283.6 million, down 24% from the prior-year quarter. Meanwhile, operating expenses at the Mountain segment totaled $186.1 million, down 29% year over year. EBITDA was impacted by coronavirus pandemic, marginally overshadowed by disciplined cost management.
Lodging net revenues in the reported quarter were $42.9 million, down 45.7% year over year primarily due to operational restrictions of North American lodging properties as a result of the pandemic. Under the segment, EBITDA declined to ($7.5) million from the prior-year quarter figure of $5.3 million.
Meanwhile, operating expenses at the Lodging segment contracted 31.5% year over year to $50.4 million.
Operating Results
Vail Resorts reported adjusted EBITDA of $274.8 million in the quarter under review compared with $373 million in the prior-year quarter. The decline was primarily due to negative impact of the coronavirus pandemic.
Resort operating expenses totaled $409.5 million, down 25% year over year. Meanwhile, total segmental operating expenses contracted 25% year over year to $411 million.
Balance Sheet
Cash and cash equivalents as Jan 31, 2021, totaled $1,301 million, up from $126.8 million in the year-ago period.
Net long-term debt amounted to $2,768 million at the end of the quarter, up from $1,817.1 million at the end of the prior-year quarter.
As of Feb 28, 2021, the company had total cash and revolver availability of approximately $2 billion. This includes $1.4 billion of cash in hand, $419 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $179 million of revolver availability under the Whistler Credit Agreement.
Fiscal 2021 Guidance
The company provided results for nine months ended Apr 30, 2021. The company anticipates net income in the range of $204 million to $247 million. Resort reported EBITDA is expected between $560 million and $600 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 51.1% due to these changes.
VGM Scores
At this time, Vail Resorts has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Vail Resorts has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.