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Vail Resorts (MTN) Q2 Earnings Miss, Revenues Top Estimates
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Vail Resorts, Inc. (MTN - Free Report) reported second-quarter fiscal 2023 results, wherein earnings missed the Zacks Consensus Estimate, but revenues surpassed. Earnings missed the Zacks Consensus Estimate for the second straight quarter.
Kirsten Lynch, chief executive officer, Vail Resorts, stated, “Our ancillary businesses, including ski school, dining, and retail/rental, experienced strong growth compared to the prior year period, when staffing shortages constrained capacity of ancillary businesses. We believe these investments in staffing and our commitment to enhancing the guest experience establish a strong foundation for future growth.”
Following the announcement, shares of the company declined 2.1% during the after-hours trading session on Mar 9.
Earnings & Revenues
In the quarter under review, the company reported adjusted earnings of $5.16 per share, missing the Zacks Consensus Estimate of $6.19. In the prior-year quarter, the company reported adjusted earnings of $5.47.
Quarterly revenues amounted to $1,101.7 million, beating the Zacks Consensus Estimate of $1,071 million by 2.9%. The top line rose 21.5% on a year-over-year basis. Strong destination guest visitation and robust pass product sales added to the upside.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Vail Resorts reports through two segments — Mountain and Lodging.
Mountain generated revenues of $1,013.4 million, up 21.5% year over year. During the quarter, revenues from dining, retail/rental, lift and ski school rose 58.8%, 26.1%, 13.6% and 34.1% year over year, respectively.
The segment’s EBITDA amounted to $398.6 million compared with $388.5 million reported in the prior-year quarter. Mountain’s operating expenses totaled $614.6 million, up 37.6% year over year.
Lodging’s net revenues (excluding payroll cost reimbursements) were $80.6 million, up 11.9% year over year, primarily due to robust dining revenues. This segment’s EBITDA came in at ($4.1) million against $9.3 million reported in the year-ago quarter.
Operating expenses in this segment increased 35.2% year over year to $84.6 million.
Operating Results
Vail Resorts reported adjusted EBITDA of $396.9 million compared with $397.5 million reported in the prior-year quarter. Operating expenses totaled $705.6 million, up 38.1% year over year.
Balance Sheet
Cash and cash equivalents as of Jan 31, 2023, totaled $1,295.3 million compared with $1,407 million in the year-ago period.
Net long-term debt amounted to $2,789.8 million at the end of the quarte, compared with $2,695.6 million at the end of the prior-year quarter.
As of Jan 31, 2022, the company had total cash and revolver availability of approximately $1.9 billion. This includes $1.3 billion cash in hand, $415 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $212 million of revolver availability under the Whistler Credit Agreement.
Fiscal 2023 Guidance
In fiscal 2023, net income is estimated in the range of $282-$328 million compared with the prior estimate of $321-$396 million. EBITDA is expected in the range of $831-$859 million compared with the prior guided range of $893-$947 million.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Las Vegas Sands Corp. (LVS - Free Report) , Bluegreen Vacations Holding Corporation and Crocs, Inc. (CROX - Free Report) .
Las Vegas Sands sports a Zacks Rank #1 (Strong Buy). LVS has a long-term earnings growth rate of 2.5%. The stock has increased 46.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 107.7% and 217.5%, respectively, from the year-ago period’s estimated levels.
Bluegreen Vacations sports a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 11.6%, on average. Shares of the company have increased 5.5% in the past year.
The Zacks Consensus Estimate for BVH’s 2023 sales and EPS indicates a rise of 0.2% and 10.2%, respectively, from the year-ago levels.
Crocs carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 21.8%, on average. Shares of Crocs have increased 63.5% in the past year.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 12.4% and 0.9%, respectively, from the year-ago period’s levels.
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Vail Resorts (MTN) Q2 Earnings Miss, Revenues Top Estimates
Vail Resorts, Inc. (MTN - Free Report) reported second-quarter fiscal 2023 results, wherein earnings missed the Zacks Consensus Estimate, but revenues surpassed. Earnings missed the Zacks Consensus Estimate for the second straight quarter.
Kirsten Lynch, chief executive officer, Vail Resorts, stated, “Our ancillary businesses, including ski school, dining, and retail/rental, experienced strong growth compared to the prior year period, when staffing shortages constrained capacity of ancillary businesses. We believe these investments in staffing and our commitment to enhancing the guest experience establish a strong foundation for future growth.”
Following the announcement, shares of the company declined 2.1% during the after-hours trading session on Mar 9.
Earnings & Revenues
In the quarter under review, the company reported adjusted earnings of $5.16 per share, missing the Zacks Consensus Estimate of $6.19. In the prior-year quarter, the company reported adjusted earnings of $5.47.
Quarterly revenues amounted to $1,101.7 million, beating the Zacks Consensus Estimate of $1,071 million by 2.9%. The top line rose 21.5% on a year-over-year basis. Strong destination guest visitation and robust pass product sales added to the upside.
Vail Resorts, Inc. Price, Consensus and EPS Surprise
Vail Resorts, Inc. price-consensus-eps-surprise-chart | Vail Resorts, Inc. Quote
Segment Results
Vail Resorts reports through two segments — Mountain and Lodging.
Mountain generated revenues of $1,013.4 million, up 21.5% year over year. During the quarter, revenues from dining, retail/rental, lift and ski school rose 58.8%, 26.1%, 13.6% and 34.1% year over year, respectively.
The segment’s EBITDA amounted to $398.6 million compared with $388.5 million reported in the prior-year quarter. Mountain’s operating expenses totaled $614.6 million, up 37.6% year over year.
Lodging’s net revenues (excluding payroll cost reimbursements) were $80.6 million, up 11.9% year over year, primarily due to robust dining revenues. This segment’s EBITDA came in at ($4.1) million against $9.3 million reported in the year-ago quarter.
Operating expenses in this segment increased 35.2% year over year to $84.6 million.
Operating Results
Vail Resorts reported adjusted EBITDA of $396.9 million compared with $397.5 million reported in the prior-year quarter. Operating expenses totaled $705.6 million, up 38.1% year over year.
Balance Sheet
Cash and cash equivalents as of Jan 31, 2023, totaled $1,295.3 million compared with $1,407 million in the year-ago period.
Net long-term debt amounted to $2,789.8 million at the end of the quarte, compared with $2,695.6 million at the end of the prior-year quarter.
As of Jan 31, 2022, the company had total cash and revolver availability of approximately $1.9 billion. This includes $1.3 billion cash in hand, $415 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $212 million of revolver availability under the Whistler Credit Agreement.
Fiscal 2023 Guidance
In fiscal 2023, net income is estimated in the range of $282-$328 million compared with the prior estimate of $321-$396 million. EBITDA is expected in the range of $831-$859 million compared with the prior guided range of $893-$947 million.
Zacks Rank and Stocks to Consider
Currently, Vail Resorts carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Las Vegas Sands Corp. (LVS - Free Report) , Bluegreen Vacations Holding Corporation and Crocs, Inc. (CROX - Free Report) .
Las Vegas Sands sports a Zacks Rank #1 (Strong Buy). LVS has a long-term earnings growth rate of 2.5%. The stock has increased 46.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 107.7% and 217.5%, respectively, from the year-ago period’s estimated levels.
Bluegreen Vacations sports a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 11.6%, on average. Shares of the company have increased 5.5% in the past year.
The Zacks Consensus Estimate for BVH’s 2023 sales and EPS indicates a rise of 0.2% and 10.2%, respectively, from the year-ago levels.
Crocs carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 21.8%, on average. Shares of Crocs have increased 63.5% in the past year.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 12.4% and 0.9%, respectively, from the year-ago period’s levels.