Vail Resorts Earnings: Here’s Why Shares are Down Now

Vail Resorts Inc. (NYSE:MTN) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.06%.

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Vail Resorts Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.58% to $2.66 in the quarter versus EPS of $2.17 in the year-earlier quarter.

Revenue: Rose 11.53% to $469.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vail Resorts Inc. reported adjusted EPS income of $2.66 per share. By that measure, the company missed the mean analyst estimate of $2.74. It missed the average revenue estimate of $474.17 million.

Quoting Management: Robert Katz, Chief Executive Officer, commented, “We are very pleased with our performance in the third quarter of fiscal 2013. We delivered record revenue and EBITDA, had a solid recovery in skier visits from the prior year and achieved robust increases in spending per guest. Skier visits at our Colorado resorts for the quarter were up 11.8% over the prior year, offset somewhat by a decline of 0.4% in skier visits in Tahoe (excluding Kirkwood), where unusually warm and dry temperatures this spring negatively impacted results. For the quarter, excluding the Acquisitions, lift revenue excluding season pass revenue was up 13.4% compared with the same period in the prior year and we saw continued growth in ancillary revenue, driven by increased guest spend, with dining revenue up 13.9%, ski school revenue up 11.8%, and retail/rental revenue up 7.4%. Retail/rental results were modestly tempered by results in our city store locations.”

Key Stats (on next page)…

Revenue increased 11.18% from $422.45 million in the previous quarter. EPS increased 61.21% from $1.65 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $1.56 to a loss $1.53. For the current year, the average estimate has moved up from a profit of $1.23 to a profit of $1.24 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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