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MTN Set to Report Q3 Earnings: Here's What Investors Should Know

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Key Takeaways

  • Vail Resorts third-quarter fiscal 2025 results are expected to indicate earnings and revenue beat.
  • MTN to gain from its focus on the season pass program and ongoing investments.
  • About $100 million in annualized cost savings by fiscal 2026 paves the path for operational efficiency.

Vail Resorts, Inc. (MTN - Free Report) is scheduled to report its third-quarter fiscal 2025 results on June 5, after the closing bell.

In the last quarter, its adjusted earnings topped the Zacks Consensus Estimate by 4.3%, while the net revenues marginally missed the same by 0.1%. On a year-over-year basis, both metrics grew 13.9% and 5.5%, respectively.

Markedly, MTN reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the average surprise being 0.4%.

Trend in Estimate Revision of MTN

The Zacks Consensus Estimate for fiscal third-quarter earnings per share (EPS) has trended down to $10 from $10.10 over the past seven days. However, the estimated figure indicates 4.8% year-over-year growth from earnings of $9.54 per share.

For net revenues, the consensus mark is pegged at $1.3 billion, indicating a 1.5% rise from the year-ago quarter’s reported figure of $1.28 billion. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

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 Likely to Shape Vail Resorts’ Q3 Results

The top-line performance of Vail Resorts is likely to have been boosted by the benefits realized from the stability of its season pass program, ongoing investments in guest experience and solid execution across its mountain resorts. The strategic investment includes lift upgrades, beginner ski and ride school improvements, dining experiences and real estate development. The incremental effect of these tailwinds is likely to have been reflected in the growth in lift ticket revenues and ancillary businesses such as ski school and dining.

Owing to these tailwinds, our model predicts Mountain and Lodging net revenues for the to-be-reported quarter to grow year over year by 1.5% to $1.21 billion and 17.1% to $101.9 million, respectively. The net revenues from the Real Estate segment are also expected to grow year over year by 362.4% to $0.8 million.

Moving forward, the company aims to continue with its two-year resource efficiency transformation plan, which is also likely to aid the quarterly results.

Moreover, MTN’s ongoing resource efficiency transformation plan, aimed at achieving $100 million in annualized cost savings by fiscal 2026, is likely to have contributed to margin stability. Our model expects the operating margin to expand 110 basis points to 43.7% compared with the year-ago quarter.

What Zacks Model Says About MTN Stock

Our proven model conclusively predicts an earnings beat for Vail Resorts this time around. The company possesses the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.

Earnings ESP: MTN has an Earnings ESP of +1.87%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Consumer Discretionary sector, which, according to our model, have the right combination of elements to post an earnings beat.

Netflix, Inc. (NFLX - Free Report) currently has an Earnings ESP of +2.44% and a Zacks Rank of 2 at present.

Netflix’s earnings for the second quarter of 2025 are expected to grow 44.5%. It reported better-than-expected earnings in each of the trailing four quarters, with an earnings surprise of 6.9% on average.

Carnival Corporation & plc (CCL - Free Report) has an Earnings ESP of +8.42% and a Zacks Rank of 3.

Carnival is expected to register a 109.1% increase in earnings for the second quarter of fiscal 2025. It reported better-than-expected earnings in all the trailing four quarters, with an earnings surprise of 458.4% on average.

Boyd Gaming Corporation (BYD - Free Report) currently has an Earnings ESP of +3.39% and a Zacks Rank of 3.

Boyd Gaming’s earnings for the second quarter of 2025 are expected to increase 2.5%. It reported better-than-expected earnings in each of the trailing four quarters, with an earnings surprise of 8% on average.

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