Vail Resorts Reports Worse-Than-Expected Q2 Results, Lowers FY2024 Guidance

Vail Resorts, Inc. MTN shares are trading lower after the company reported lower-than-expected second-quarter financial results and lowered its fiscal year 2024 guidance. Here's a look at the details. 

The Details:

The company reported quarterly earnings of $5.76 per share which missed the analyst consensus estimate of $5.98 and is a 11.63% increase over earnings of $5.16 per share year-over-year.

Quarterly sales clocked in at $1.08 billion, missing the analyst consensus estimate of $1.15 billion by 6.26% and representing a 2.18% decrease from sales of $1.1 billion from the same period last year.

“Given the unfavorable conditions across our North American resorts, we are pleased that our results for the quarter demonstrate the resiliency of our strategic business model and our network of resorts and loyal guests. The results for the second quarter were negatively impacted by challenging conditions at all of our North American resorts, with approximately 42% lower snowfall across our western North American resorts through January compared to the same period in the prior year and limited natural snow and variable temperatures at our Eastern U.S. resorts (comprising the Midwest, Mid-Atlantic, and Northeast),” stated Kirsten Lynch, CEO of Vail Resorts.

Outlook: 

Vail Resorts lowered its fiscal year 2024 guidance and now expects net income in a range of $270 million to $325 million and EBITDA of between $849 million and $885 million.

“Due to the season-to-date underperformance, we are lowering our guidance for fiscal 2024. For the remainder of the season, we are expecting improved performance compared to the season-to-date period, including an expected shift in visitation patterns into March and April. This is based on our significant base of pre-committed guests and guest historical behavior patterns, the improvement in conditions across our western North American and Northeast resorts, and our lodging booking trends for the Spring Break period,” Lynch said.

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MTN Price Action: According to Benzinga Pro, Vail Resorts shares are down 4.29% after-hours at $215.00  at the time of publication.

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