Vail Resorts, Inc. | $MTN Stock | Shares Soar On Q3 Profit Jump & Guidance Lift

Vail Resorts Photo

Vail Resorts, Inc. (NYSE: MTN) 


Vail Resorts gained more than $16 on Thursday morning after the company reported its earnings for fiscal third-quarter ended April 30.

The company finished above Wall Street estimates on both revenue and per-share earnings sending its stock up $275.90 at 9:40 a.m.

Thursday’s quarterly report follows an announcement by CEO Rob Katz at the start of the week that the company had agreed to buy Okemo Mountain Resort, Mount Sunapee Resort and a Colorado resort owned by the Mueller family.

MTN Earnings & Outlook

Vail Resorts reported net profit of $256.3 million, or $6.17 per share in the quarter ended April 30.

In the same quarter last year, the company had a net profit of $181.1 million, or $4.40 per share. Analyst surveyed by Thompson Reuters expected net profit of $252.8 million, or $6.18 per share.

Revenue grew 6.3% to $844.5 million compared with Wall Street’s estimate of $823.8 million.

EBITDA (earnings before interest, taxes, depreciation and amortization) climbed to $423.4 million during the quarter, versus the prior-year figure of $387.0 million. For the full year, the company expects EBITDA in the range of $612 million to $622 million.

Further, it anticipates net profit of between $360 million and $381 million.

Vail Resorts CEO Comments

Vail Resorts Chief Executive Officer, Rob Katz said, “We are pleased with our performance in the quarter and for the full 2017/2018 North American ski season, particularly given the challenging weather conditions across the western U.S. for much of the season. Our performance demonstrates the resiliency of our business model, the stability provided by our geographically diverse resort network and the importance of increased advanced purchase products, including our season passes. Our improved results in the third fiscal quarter also underscore the strength of the high-end consumer’s demand for ski vacations once conditions improved across our network.”

Vail Resorts, Inc. Company Profile

Vail Resorts, Inc. owns and operates urban ski areas and mountain resorts across the U.S. It has three segments of operation: Real Estate, Mountain, and Lodging.

The Real Estate division owns, sells and develops real estate properties in and around the resort communities of the company.

The Mountain division operates eleven mountain resorts in Colorado, Utah, California, Nevada, Canada, Vermont, Australia, and 3 urban ski areas, in Wisconsin, Michigan, and Minnesota.

Its resorts offer a variety of summer and winter recreational activities, such as snowboarding, sightseeing, skiing, alpine slides, snowshoeing, guided hiking, mountain biking, mountain coasters, zip lines, and kid’s activities.

The Lodging segment operates various RockResorts-branded condominiums and luxury hotels and other lodging properties; golf courses, destination resorts, and mountain resorts.

The company faces competition from Deer Valley, Aspen Snowmass, Steamboat, Copper Mountain, Snowbird, Winter Park, Squaw Valley USA, Aramark Parks & Resorts, Sierra at Tahoe, Winter Park, Forever Resorts, Starwood, Hyatt, Four Seasons, Xanterra Parks & Resorts, Hilton, Westin, Marriott, and Ritz-Carlton. The headquarters of Vail Resorts, Inc. are located in Broomfield, Colorado. The company was founded in 1997. –Reuters