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Vail Resorts (MTN) to Post Q3 Earnings: What's in the Offing?

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Vail Resorts, Inc. (MTN - Free Report) is scheduled to report third-quarter fiscal 2022 results on Jun 9, after the closing bell. In the last reported quarter, the company reported a negative earnings surprise of 4%.

How are Estimates Placed?

The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $9.13 per share, indicating an improvement of 35.9% from $6.72 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $1,158 million. The metric suggests an increase of 30.2% from the year-ago quarter’s figure.

Vail Resorts, Inc. Price and EPS Surprise

 

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’ third-quarter fiscal 2022 performance is likely to reflect strong performance by the company’s North American ski season and solid resort revenues. On Apr 25, 2022, the company provided a business update, reporting strength in destination visitation and solid lift ticket sales at Colorado and Utah resorts. The company recorded solid performance at Whistler Blackcomb owing to the easing travel restrictions in Canada. Also, it informed that eastern U.S. ski areas’ performance mostly remained in line with expectations.

Season-to-date (through Apr 17, 2022) total skier visits increased 12.5% from the prior-year season-to-date period’s (Apr 18, 2021) levels. Lift ticket revenues (including an allocated portion of season pass revenues for each applicable period) increased 19.4% year over year. Ski school revenues surged 53% year over year while dining revenues rose 73.2% compared with the prior-year period’s figure. Retail/rental revenues for North American resort and ski area store locations increased 39% 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 and strategic price management are likely to have aided the company’s performance in the to-be-reported quarter.

However, unfavorable weather conditions are likely to have affected operations in Tahoe resorts. This and coronavirus-induced operational restrictions in dining and staffing challenges are likely to have affected the company’s ancillary lines of business in the fiscal third 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported:

Wyndham Hotels & Resorts, Inc. (WH - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank #3. The Zacks Consensus Estimate for quarterly earnings per share is pegged at 95 cents, flat year over year.

Wyndham Hotels & Resorts top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $346.6 million, which indicates a decline of 14.6% from the prior-year quarter. WH has a trailing four-quarter earnings surprise of 36.1%, on average.

Hilton Grand Vacations Inc. (HGV - Free Report) currently has an Earnings ESP of +1.86% and a Zacks Rank #3.

Shares of Hilton Grand Vacations’ have increased 1.8% in the past year. HGV’s earnings missed the consensus mark thrice in the trailing four quarters and beat once, the average surprise being 14.9%.

Chipotle Mexican Grill (CMG - Free Report) currently has an Earnings ESP of +0.09% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $9.04 suggests an increase of 21.2% from the year-ago reported number.

Chipotle Mexican Grill’s top line is expected to improve year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.24 billion, which indicates growth of 18.6% from the prior-year quarter. CMG has a trailing four-quarter earnings surprise of 9.3%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.