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

Key Points

• Vail Resorts shares gapped down after the company reported weaker-than-expected quarterly earnings, opening at $131.32 versus the prior close of $137.21.
• The company posted EPS of $8.81, missing analysts’ estimate of $8.97, while revenue of $1.21 billion was slightly above expectations but still down 7% year over year.
• Vail Resorts also announced a quarterly dividend of $2.22 per share, implying an annualized yield of about 6.8%, even as its payout ratio remains elevated.

Vail Resorts, Inc. (NYSE:MTN - Get Free Report) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $137.21, but opened at $131.32. Vail Resorts shares last traded at $130.6030, with a volume of 350,252 shares.

The company reported $8.81 earnings per share for the quarter, missing analysts' consensus estimates of $8.97 by ($0.16). The company had revenue of $1.21 billion for the quarter, compared to analysts' expectations of $1.20 billion. Vail Resorts had a net margin of 7.89% and a return on equity of 29.72%. The business's quarterly revenue was down 7.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $10.54 EPS.

Vail Resorts Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 25th will be given a dividend of $2.22 per share. This represents a $8.88 annualized dividend and a yield of 6.8%. The ex-dividend date is Thursday, June 25th. Vail Resorts's dividend payout ratio (DPR) is currently 144.86%.

Trending Headlines about Vail Resorts

Here are the key news stories impacting Vail Resorts this week:

• Positive Sentiment: Vail Resorts announced a quarterly dividend of $2.22 per share, which implies a 6.5% annualized yield and may appeal to income-focused investors. MarketBeat MTN dividend update
• Positive Sentiment: Revenue for the quarter came in slightly above Wall Street estimates at $1.21 billion, and the company said early season pass sales and its advance-commitment pass model continue to support the business. Vail Resorts Q3 results and guidance release
• Neutral Sentiment: The stock is also getting attention as a high-yield, lower-beta leisure name, and analysts were already looking for earnings around the reported level ahead of the release. Analyst expectations ahead of earnings
• Negative Sentiment: Fiscal Q3 EPS of $8.81 missed the $8.97 consensus, and earnings fell from $10.54 a year ago, underscoring softer profitability. Zacks earnings miss coverage
• Negative Sentiment: Management cut its outlook again after weather-related weakness reduced visits and weighed on revenue, increasing investor concern that the demand slowdown could persist. Seeking Alpha forecast cut coverage

Wall Street Analyst Weigh In

MTN has been the topic of several analyst reports. Barclays set a $119.00 price target on shares of Vail Resorts and gave the company an "underweight" rating in a research report on Tuesday. Truist Financial decreased their price objective on Vail Resorts from $217.00 to $212.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. Weiss Ratings cut Vail Resorts from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, April 9th. BNP Paribas Exane reissued an "outperform" rating on shares of Vail Resorts in a research report on Tuesday, March 10th. Finally, Morgan Stanley lowered their price objective on Vail Resorts from $151.00 to $147.00 and set an "equal weight" rating for the company in a research report on Thursday, March 12th. Five research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Vail Resorts has an average rating of "Hold" and a consensus price target of $155.73.

Insiders Place Their Bets

In other news, CFO Angela A. Korch bought 190 shares of Vail Resorts stock in a transaction that occurred on Monday, March 16th. The shares were purchased at an average price of $131.85 per share, with a total value of $25,051.50. Following the completion of the acquisition, the chief financial officer directly owned 5,539 shares in the company, valued at $730,317.15. The trade was a 3.55% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Robert A. Katz acquired 37,500 shares of the firm's stock in a transaction dated Monday, March 16th. The shares were purchased at an average cost of $131.81 per share, with a total value of $4,942,875.00. Following the completion of the transaction, the chief executive officer owned 285,312 shares in the company, valued at approximately $37,606,974.72. The trade was a 15.13% increase in their position. The disclosure for this purchase is available in the SEC filing. 1.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Vail Resorts

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Clearstead Advisors LLC raised its holdings in Vail Resorts by 21.5% during the fourth quarter. Clearstead Advisors LLC now owns 424 shares of the company's stock worth $56,000 after purchasing an additional 75 shares in the last quarter. Comerica Bank grew its holdings in shares of Vail Resorts by 0.4% during the third quarter. Comerica Bank now owns 17,552 shares of the company's stock worth $2,625,000 after buying an additional 78 shares during the last quarter. Xponance Inc. grew its stake in shares of Vail Resorts by 1.2% in the 3rd quarter. Xponance Inc. now owns 6,903 shares of the company's stock valued at $1,032,000 after purchasing an additional 82 shares during the last quarter. Provident Investment Management Inc. increased its stake in Vail Resorts by 1.6% in the 3rd quarter. Provident Investment Management Inc. now owns 5,821 shares of the company's stock valued at $871,000 after buying an additional 90 shares during the period. Finally, MAI Capital Management increased its stake in shares of Vail Resorts by 25.2% during the third quarter. MAI Capital Management now owns 482 shares of the company's stock worth $72,000 after acquiring an additional 97 shares during the period. Institutional investors and hedge funds own 94.90% of the company's stock.

Vail Resorts Price Performance

The company has a 50-day simple moving average of $128.09 and a 200-day simple moving average of $135.29. The company has a market cap of $4.63 billion, a price-to-earnings ratio of 21.17, a PEG ratio of 11.52 and a beta of 0.72. The company has a debt-to-equity ratio of 4.43, a quick ratio of 0.51 and a current ratio of 0.62.

Vail Resorts Company Profile

Vail Resorts, Inc is a leading mountain resort company that owns and operates an integrated network of ski areas, hotels, restaurants and retail outlets. The company's signature Epic Pass program offers skiers and snowboarders season‐long access to its portfolio of resorts, while ancillary services such as ski and snowboard schools, equipment rental and retail drive additional revenue.

Headquartered in Broomfield, Colorado, Vail Resorts was formed in 1997, building on the legacy of Vail Associates, which opened the Vail ski area in 1962.

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