Viad Corp Earnings: Here’s Why Investors are Not Excited Now

Viad Corp (NYSE:VVI) delivered a profit 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 2.52%.

Viad Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 13.79% to $0.33 in the quarter versus EPS of $0.29 in the year-earlier quarter.

Revenue: Rose 1.16% to $249.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Viad Corp reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.3. It missed the average revenue estimate of $253.83 million.

Quoting Management: Paul B. Dykstra, chairman, president and chief executive officer, said, “Our results for the second quarter of 2013 were in line with prior guidance, despite extensive flooding in the Canadian province of Alberta during late June that impacted the Banff and Jasper based operations of our Travel & Recreation Group. Overall, both of Viad’s business units posted solid results for the quarter, with consolidated revenue of $249.3 million and segment operating income of $10.9 million. Our Marketing & Events Group continues to experience same-show growth, visitation to Banff and Jasper is improving after the floods, and we’re seeing strong advance bookings for rooms at Glacier Park and Alaska Denali Travel.”

Key Stats (on next page)…

Revenue decreased 12.58% from $285.16 million in the previous quarter. EPS decreased 21.43% from $0.42 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.92 to a profit $0.88. For the current year, the average estimate has moved up from a profit of $1.21 to a profit of $1.26 over the last ninety days.

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