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Vail Resorts (MTN) Reports Narrower Than Expected Loss in Q4

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Vail Resorts, Inc. (MTN - Free Report) reported mixed results for fourth-quarter fiscal 2018. The company reported adjusted loss of $2.07 per share, which was narrower than the Zacks Consensus Estimate of loss of $2.31 but compared unfavorably with the year-ago quarter’s loss of $1.43. Earnings were affected by high operating expenses across segments.

Quarterly revenues of $211.64 million missed the consensus mark by nearly 1% but increased 1.2% year over year. Revenue growth was driven by higher segmental sales.

Vail Resorts, Inc. Price, Consensus and EPS Surprise


Segment Results

Vail Resorts has two reporting segments — Mountain (62.1% in the fourth quarter of fiscal 2018) and Lodging (37.9%).

The Mountain segment reported revenues of $131.4 million in the fourth quarter, up 4.5% year over year. Revenue growth is primarily attributable to increase in sales across lift, ski school, dining and others, partially offset by retail/rental sales dip.

Total operating expenses in the segment were $196.3 million, up 7% year over year.

Lodging net revenues in the reported quarter amounted to $80.2 million, up 4.6% year over year. Lodging revenues were favored by an increase in sales across owned hotel rooms, managed condominium rooms, dining, transportation, golf and other.

Operating expenses for the segment increased 5.6% year over year to $73.7 million.

Balance Sheet

Cash and cash equivalents as of Jul 31, 2018, came in at $178.1 million compared with $117.4 million as of Jul 31, 2017.

Net long-term debt as of Jul 31, 2018, was $1,234.3 million compared with $1,234.02 million as of Jul 31, 2017.

Fiscal 2018 Highlights

Net revenues for the fiscal increased 5.5% year over year. Earnings were $9.13 per share for the year, up from $5.22 in fiscal 2017.

Fiscal 2019 Guidance

For fiscal 2019, total EBIDTA is estimated to be $715-$753 million. Net income is anticipated to vary from $316 million to $359 million.

Zacks Rank & Stocks to Consider

Vail Resorts currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks from the leisure space include Johnson Outdoors , Malibu Boats (MBUU - Free Report) and Callaway Golf (ELY - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Callaway Golf, Johnson Outdoors and Malibu Boats’ earnings for 2018 are expected to grow 88.7%, 46.4% and 24.2%, respectively.

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