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Factors Setting the Tone for Vail Resorts' (MTN) Q2 Earnings
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Vail Resorts, Inc. (MTN - Free Report) is scheduled to release second-quarter fiscal 2022 results on Mar 14, 2022, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 5.8%.
How are Estimates Placed?
The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $5.73 per share, indicating an improvement of 58.3% from $3.62 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $966.3 million. The metric suggests an increase of 41.1% from the year-ago quarter’s figure.
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Vail Resorts’ second-quarter fiscal 2022 performance is likely to reflect strong performance by the company’s North American ski season and solid resort revenues. On Jan 14, 2022, the company provided a business update, whereby its 2021/22 North American ski season (through Jan 2, 2022) got off to a slow start with challenging early season conditions. The company stated that the Omicron variant had affected the company’s performance in the fiscal second quarter. The company’s season pass business, the relative strength of destination visitation over the holidays and lately improved conditions bode well.
Season-to-date (through Jan 2, 2022) total skier visits fell 1.7% from the prior-year season-to-date period’s (Jan 3, 2021) levels. Lift ticket revenues (including an allocated portion of season pass revenues for each applicable period) increased 25.9% year over year but declined 4.6% from the fiscal year 2020 season-to-date period’s tally. Ski school revenues surged 59.1% year over year while dining revenues rose 64.7% compared with the prior-year period’s figure. Retail/rental revenues for North American resort and ski area store locations increased 36.3% compared with the prior-year season-to-date period’s levels.
Increased focus on offerings such as Epic Pass, Epic Local Pass, Epic Day Pass and Epic Coverage products coupled with price deductions and renewal of passes (owing to credit deadlines) is likely to have driven the fiscal second-quarter top line.
Seasonal headwinds pertaining to delayed openings and limited open terrain are likely to have dented the company’s operations during the first week of the holidays ending Dec 26, 2021. This along with coronavirus-induced changes relating to travel, consumer behavior and governmental regulations, is likely to have affected the company’s operations in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Vail Resorts this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Vail Resorts has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:
Oxford Industries, Inc. (OXM - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #2.
Shares of Oxford have declined 4.5% in the past year. OXM’s earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 96.7%.
Whirlpool Corporation (WHR - Free Report) has an Earnings ESP of +7.36% and a Zacks Rank #2.
Shares of Whirlpool have gained 9.8% in the past six months. WHR’s earnings earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 14.9%.
The Marcus Corporation (MCS - Free Report) has an Earnings ESP of +13.89% and a Zacks Rank #3.
Shares of Marcus have gained 10.3% in the past six months. MCS’ earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 67.8%.
Image: Bigstock
Factors Setting the Tone for Vail Resorts' (MTN) Q2 Earnings
Vail Resorts, Inc. (MTN - Free Report) is scheduled to release second-quarter fiscal 2022 results on Mar 14, 2022, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 5.8%.
How are Estimates Placed?
The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $5.73 per share, indicating an improvement of 58.3% from $3.62 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $966.3 million. The metric suggests an increase of 41.1% from the year-ago quarter’s figure.
Vail Resorts, Inc. Price and EPS Surprise
Vail Resorts, Inc. price-eps-surprise | Vail Resorts, Inc. Quote
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Vail Resorts’ second-quarter fiscal 2022 performance is likely to reflect strong performance by the company’s North American ski season and solid resort revenues. On Jan 14, 2022, the company provided a business update, whereby its 2021/22 North American ski season (through Jan 2, 2022) got off to a slow start with challenging early season conditions. The company stated that the Omicron variant had affected the company’s performance in the fiscal second quarter. The company’s season pass business, the relative strength of destination visitation over the holidays and lately improved conditions bode well.
Season-to-date (through Jan 2, 2022) total skier visits fell 1.7% from the prior-year season-to-date period’s (Jan 3, 2021) levels. Lift ticket revenues (including an allocated portion of season pass revenues for each applicable period) increased 25.9% year over year but declined 4.6% from the fiscal year 2020 season-to-date period’s tally. Ski school revenues surged 59.1% year over year while dining revenues rose 64.7% compared with the prior-year period’s figure. Retail/rental revenues for North American resort and ski area store locations increased 36.3% compared with the prior-year season-to-date period’s levels.
Increased focus on offerings such as Epic Pass, Epic Local Pass, Epic Day Pass and Epic Coverage products coupled with price deductions and renewal of passes (owing to credit deadlines) is likely to have driven the fiscal second-quarter top line.
Seasonal headwinds pertaining to delayed openings and limited open terrain are likely to have dented the company’s operations during the first week of the holidays ending Dec 26, 2021. This along with coronavirus-induced changes relating to travel, consumer behavior and governmental regulations, is likely to have affected the company’s operations in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Vail Resorts this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Vail Resorts has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Posed to Beat earnings
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:
Oxford Industries, Inc. (OXM - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #2.
Shares of Oxford have declined 4.5% in the past year. OXM’s earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 96.7%.
Whirlpool Corporation (WHR - Free Report) has an Earnings ESP of +7.36% and a Zacks Rank #2.
Shares of Whirlpool have gained 9.8% in the past six months. WHR’s earnings earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 14.9%.
The Marcus Corporation (MCS - Free Report) has an Earnings ESP of +13.89% and a Zacks Rank #3.
Shares of Marcus have gained 10.3% in the past six months. MCS’ earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 67.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.