Vail Resorts (NYSE:MTN) Shares Gap Down on Disappointing Earnings

Key Points

• Vail Resorts' shares gapped down from $148.06 to $139.68 after the company reported quarterly earnings of ($5.08) EPS, missing the consensus estimate of ($4.75) by $0.33.
• The company declared a quarterly dividend of $2.22 per share, reflecting an annualized dividend of $8.88 and a yield of 6.1%, despite a dividend payout ratio of 113.55%.
• Analysts have mixed views on Vail Resorts, with target prices ranging from $165.00 to $195.00, and a consensus rating of "Hold" based on various ratings from investment firms.

Shares of Vail Resorts, Inc. (NYSE:MTN - Get Free Report) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $148.06, but opened at $139.68. Vail Resorts shares last traded at $144.27, with a volume of 364,379 shares trading hands.

The company reported ($5.08) EPS for the quarter, missing the consensus estimate of ($4.75) by ($0.33). Vail Resorts had a return on equity of 30.25% and a net margin of 9.81%.The company had revenue of $271.29 million for the quarter, compared to analyst estimates of $272.87 million. During the same quarter in the prior year, the business posted ($4.67) earnings per share. The business's revenue for the quarter was up 2.2% compared to the same quarter last year.

Vail Resorts Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, October 27th. Stockholders of record on Thursday, October 9th will be paid a dividend of $2.22 per share. The ex-dividend date of this dividend is Thursday, October 9th. This represents a $8.88 dividend on an annualized basis and a dividend yield of 6.1%. Vail Resorts's dividend payout ratio (DPR) is 113.55%.

Wall Street Analyst Weigh In

A number of analysts have issued reports on MTN shares. Mizuho set a $195.00 target price on shares of Vail Resorts in a research note on Tuesday. Bank of America decreased their price target on Vail Resorts from $175.00 to $165.00 and set a "neutral" rating for the company in a research note on Tuesday. Morgan Stanley reissued a "cautious" rating on shares of Vail Resorts in a research note on Friday. UBS Group decreased their target price on Vail Resorts from $185.00 to $169.00 and set a "neutral" rating for the company in a research report on Wednesday, June 11th. Finally, Stifel Nicolaus set a $175.00 price objective on shares of Vail Resorts in a research note on Tuesday. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $176.50.

Institutional Investors Weigh In On Vail Resorts

A number of hedge funds have recently modified their holdings of the business. Wellington Management Group LLP bought a new stake in shares of Vail Resorts during the fourth quarter worth $224,000. GAMMA Investing LLC boosted its position in shares of Vail Resorts by 27,955.2% during the first quarter. GAMMA Investing LLC now owns 43,205 shares of the company's stock worth $6,914,000 after buying an additional 43,051 shares during the period. Sendero Wealth Management LLC bought a new position in shares of Vail Resorts during the first quarter worth about $326,000. Procyon Advisors LLC raised its position in Vail Resorts by 46.2% in the 1st quarter. Procyon Advisors LLC now owns 2,340 shares of the company's stock valued at $374,000 after buying an additional 739 shares during the last quarter. Finally, SG Americas Securities LLC raised its position in Vail Resorts by 990.4% in the 1st quarter. SG Americas Securities LLC now owns 15,156 shares of the company's stock valued at $2,425,000 after buying an additional 13,766 shares during the last quarter. Institutional investors and hedge funds own 94.90% of the company's stock.

Vail Resorts Trading Down 1.3%

The company has a debt-to-equity ratio of 1.70, a quick ratio of 0.54 and a current ratio of 0.61. The business has a 50-day simple moving average of $153.46 and a two-hundred day simple moving average of $152.60. The stock has a market cap of $5.43 billion, a price-to-earnings ratio of 18.56, a P/E/G ratio of 1.94 and a beta of 0.87.

About Vail Resorts

Vail Resorts, Inc, through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities.

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