Vail Resorts (NYSE:MTN) Shares Gap Down on Disappointing Earnings

Shares of Vail Resorts, Inc. (NYSE:MTN) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $137.21, but opened at $131.32. Vail Resorts shares last traded at $130.6030, with a volume of 350,252 shares trading hands.

The company reported $8.81 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $8.97 by ($0.16). The company had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.20 billion. Vail Resorts had a net margin of 7.89% and a return on equity of 29.72%. Vail Resorts’s revenue was down 7.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $10.54 earnings per share.

Vail Resorts Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 25th will be given a dividend of $2.22 per share. The ex-dividend date is Thursday, June 25th. This represents a $8.88 dividend on an annualized basis and a yield of 6.8%. Vail Resorts’s payout ratio is presently 144.86%.

More Vail Resorts News

Here are the key news stories impacting Vail Resorts this week:

• Positive Sentiment: Vail Resorts announced a quarterly dividend of $2.22 per share, which implies a 6.5% annualized yield and may appeal to income-focused investors. MarketBeat MTN dividend update
• Positive Sentiment: Revenue for the quarter came in slightly above Wall Street estimates at $1.21 billion, and the company said early season pass sales and its advance-commitment pass model continue to support the business. Vail Resorts Q3 results and guidance release
• Neutral Sentiment: The stock is also getting attention as a high-yield, lower-beta leisure name, and analysts were already looking for earnings around the reported level ahead of the release. Analyst expectations ahead of earnings
• Negative Sentiment: Fiscal Q3 EPS of $8.81 missed the $8.97 consensus, and earnings fell from $10.54 a year ago, underscoring softer profitability. Zacks earnings miss coverage
• Negative Sentiment: Management cut its outlook again after weather-related weakness reduced visits and weighed on revenue, increasing investor concern that the demand slowdown could persist. Seeking Alpha forecast cut coverage

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. JPMorgan Chase & Co. lowered their price target on shares of Vail Resorts from $172.00 to $156.00 and set a “neutral” rating for the company in a report on Tuesday, March 10th. Wells Fargo & Company began coverage on Vail Resorts in a report on Wednesday, March 11th. They set an “equal weight” rating and a $135.00 target price for the company. Mizuho set a $174.00 price objective on Vail Resorts in a research note on Tuesday. Weiss Ratings downgraded shares of Vail Resorts from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, April 9th. Finally, Barclays set a $119.00 target price on Vail Resorts and gave the company an “underweight” rating in a research report on Tuesday. Five investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $155.73.

Insiders Place Their Bets

In other news, CEO Robert A. Katz purchased 37,500 shares of the company’s stock in a transaction on Monday, March 16th. The shares were bought at an average price of $131.81 per share, for a total transaction of $4,942,875.00. Following the completion of the purchase, the chief executive officer owned 285,312 shares of the company’s stock, valued at $37,606,974.72. This trade represents a 15.13% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Angela A. Korch bought 190 shares of the business’s stock in a transaction on Monday, March 16th. The shares were acquired at an average cost of $131.85 per share, for a total transaction of $25,051.50. Following the purchase, the chief financial officer directly owned 5,539 shares in the company, valued at $730,317.15. This represents a 3.55% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 1.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. BOKF NA increased its position in shares of Vail Resorts by 833.3% during the 3rd quarter. BOKF NA now owns 168 shares of the company’s stock valued at $25,000 after purchasing an additional 150 shares during the period. EverSource Wealth Advisors LLC lifted its position in shares of Vail Resorts by 815.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 174 shares of the company’s stock valued at $27,000 after acquiring an additional 155 shares in the last quarter. Golden State Wealth Management LLC boosted its position in shares of Vail Resorts by 83.3% in the fourth quarter. Golden State Wealth Management LLC now owns 220 shares of the company’s stock worth $29,000 after buying an additional 100 shares during the period. Danske Bank A S acquired a new stake in Vail Resorts during the 3rd quarter worth about $30,000. Finally, Caitong International Asset Management Co. Ltd boosted its holdings in shares of Vail Resorts by 1,585.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 236 shares of the company’s stock worth $31,000 after purchasing an additional 222 shares during the period. 94.90% of the stock is currently owned by institutional investors.

Vail Resorts Stock Down 5.2%

The business’s 50 day simple moving average is $128.09 and its 200-day simple moving average is $135.29. The company has a debt-to-equity ratio of 4.43, a quick ratio of 0.51 and a current ratio of 0.62. The company has a market cap of $4.63 billion, a price-to-earnings ratio of 21.17, a price-to-earnings-growth ratio of 11.52 and a beta of 0.72.

About Vail Resorts

Vail Resorts, Inc is a leading mountain resort company that owns and operates an integrated network of ski areas, hotels, restaurants and retail outlets. The company’s signature Epic Pass program offers skiers and snowboarders season?long access to its portfolio of resorts, while ancillary services such as ski and snowboard schools, equipment rental and retail drive additional revenue.

Headquartered in Broomfield, Colorado, Vail Resorts was formed in 1997, building on the legacy of Vail Associates, which opened the Vail ski area in 1962.