Vail Resorts (NYSE:MTN) slid in pre-market trading after announcing disappointing fiscal second-quarter results. The mountain resort company reported earnings of $5.76 per diluted share in Q2 as compared to earnings of $5.16 per share in the same period last year. This was below consensus estimates of $6.04 per share.
Vail posted total net revenues of $1.08 billion in Q2, a decline of 2.2% year-over-year but fell short of Street estimates of $1.15 billion. More importantly, the company’s season-to-date metrics from the beginning of the ski season through March 3, 2024, showed that total skier visits were down 9.7% year-over-year.
The company’s management attributed this to “unfavorable conditions” with season-to-date visitation below expectations.
The company’s board of directors declared a quarterly cash dividend of $2.22 per share, representing an 8% increase in its quarterly dividend. The dividend will be payable on April 11 to shareholders of record as of March 28, 2024.
Looking forward, the company reduced its FY24 guidance due to its “season-to-date underperformance” and now expects net income between $270 million and $325 million, down from its prior forecast in the range of $316 million to $394 million. Vail estimates FY24 EBITDA to be between $849 million and $885 million.
Is Vail Stock a Buy?
Analysts remain sidelined about MTN stock with a Hold consensus rating based on two Buys, four Holds, and one Sell. Over the past year, MTN stock has gone up by more than 5% and the average MTN price target of $244 implies an upside potential of 8.6% at current levels.
