Shares of Vail Resorts (MTN), which operates some of the largest ski areas across North America including Whistler and Beaver Creek, jumped Tuesday after it posted better-than-expected earnings for its Fiscal second quarter and narrowed its full-year outlook as it expects visits to pick up later in the ski season.
Improved snow conditions this season helped lift earnings per share to $6.56 consensus estimate of $6.31 on revenue of $1.14 billion, which was in line with forecasts. MTN also raised its full-year net income Fiscal 2025 outlook to a range of $257 million to $309 million, up from prior guidance between $240 million and $316 million, which it had already increased in December from the prior guidance range of $224 million to $300 million.
The company meanwhile narrowed its forecast for reported earnings before interest, taxes, depreciation, and amortization for the year to be between $841 million and $877 million, from a previous range between $838 million and $894 million, including an estimated $15 million in one-time costs.
Downhill All the Way for the Rest of the Season
The company said it expects improved performance for the rest of the season than it has so far, as skiers increasingly opt for trips later in the season.
In the season-to-date period through March 2nd, skier visits were down 2.5% compared to the prior year period. However, season-to-date total lift ticket revenue was up 4.1% compared to the prior year season-to-date period. It also said it’s seening “strong” ancillary spend across its ski schools and dining businesses in resorts.
“Second quarter visitation at our North American resorts was slightly above prior year levels with the benefit of improved conditions, partially offset by the expected continued industry demand normalization and the shift in destination guest visitation to the spring,” said CEO Kirsten Lynch.
Vail, which operates across the U.S., Canada, Australia, has recently pushed its way into the European market with the acquisition of Switzerland’s Crans-Montana last year, which built on in initial foray with the 2022 purchase of Andermatt-Sedrun.
Is MTN a Good Stock to Buy?
Overall, Wall Street has a Hold consensus rating based on two Buys, two Holds and two Sells. The average MTN price target of $175.00 implies about 6% upside.
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