Vail Resorts Earnings: Here’s Why the Stock is Down Now

Vail Resorts Inc. (NYSE:MTN) had a loss and beat Wall Street’s expectations, BUT 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 0.35%.

Vail Resorts Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-1.67 in the quarter versus EPS of $-1.50 in the year-earlier quarter.

Revenue: Decreased 1.09% to $112.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vail Resorts Inc. reported adjusted EPS loss of $1.67 per share. By that measure, the company beat the mean analyst estimate of $-1.71. It missed the average revenue estimate of $117.82 million.

Quoting Management: Rob Katz, Chief Executive Officer said, “We are very pleased with our performance this fiscal year. We reported record Resort revenue and Resort EBITDA that reflects higher overall visitation, improved pricing, increased average guest spend and strong pass sales. We generated significant real estate net cash flow driven by the increasing strength in resort real estate markets. We were successful in our acquisition strategy during fiscal 2013, completing our transaction for Canyons Resort in Park City, Utah and acquiring Afton Alps in Minnesota and Mount Brighton in Michigan. We also launched the initial activities for Epic Discovery on Vail Mountain and made continued progress in the approval process for our broader summer plans across our resorts. Finally, we increased the number of mountains available on our Epic Pass from 12 during the 2012/2013 ski season to 26 for the 2013/2014 ski season and added resorts in Austria and France, truly creating a global offering.”

Key Stats (on next page)…

Revenue decreased 76.09% from $469.69 million in the previous quarter. EPS decreased to $-1.67 in the quarter versus EPS of $2.66 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $1.85 and has not changed. For the current year, the average estimate has moved down from a profit of $1.02 to a profit of $0.98 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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