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Factors Likely to Shape Vail Resorts' (MTN) Earnings in Q4

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Vail Resorts, Inc. (MTN - Free Report) is scheduled to report fourth-quarter fiscal 2019 results on Sep 26, after the closing bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 1.3%.

Q4 Expectations

The Zacks Consensus Estimate for the bottom line in fourth-quarter fiscal 2019 is pegged at a loss of $2.58. In the year-ago quarter, the company had incurred a loss of $2.07 per share. Of late, Vail Resorts’ earnings estimates have remained stable.

For quarterly revenues, the consensus mark is pinned at nearly $240.8 million, implying a 13.8% improvement from the prior-year quarter reported figure.

Let’s see how things are shaping up prior to the announcement of fourth-quarter fiscal 2019 results.

Factors at Play

In the fourth quarter, Vail Resorts’ top line is likely to be driven by robust performance of the Mountain segment. The Zacks Consensus Estimate for the segment’s fourth-quarter revenues is pegged at $156 million, suggesting a 6.1% improvement from the year-ago reported figure.

Backed by a full-proof business model and a wide range of guest-centric offerings, the company seems to be well-positioned for growth. Increased focus on mergers and acquisitions along with effective marketing techniques too bode well.

However, higher operating woes linger. Vail Resorts' operational efficiencies also come at the cost of increased expenses. During the third quarter of fiscal 2019, total segmental operating expenses increased 13.6% year over year to $478.9 million. Resort operating expenses totaled $477.5 million, up 13.1% year over year.

Vail Resorts, Inc. Price and EPS Surprise

What Does the Zacks Model Unveil?

Our proven model does not show that Vail Resorts is likely to beat on earnings in fourth-quarter fiscal 2019. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP.  

Vail Resorts has an Earnings ESP of +0.44% and a Zacks Rank #4. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.  

You can see the complete list of today’s Zacks #1 Rank stocks here.    

Stocks Poised to Beat Earnings Estimates

Here are some Consumer Discretionary stocks that according to our model have the right combination of elements to post an earnings beat in the upcoming releases.

BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) , Casars Entertainment Corporation (CZR - Free Report) and Monarch Casino & Resort, Inc. (MCRI - Free Report) , all carrying a Zacks Rank #3, have an Earnings ESP of +1.10%, +133.33% and +4.13%, respectively.

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