Investing.com -- Vail Resorts rallied more than 7% on Friday after delivering blowout quarterly earnings as local skiers flocked to the company's resorts and showed little spending restraint.
Vail Resorts (NYSE:MTN) reported fiscal second-quarter earnings of $5.02 a share above expectations from Investing.com for earnings of $4.92 a share. Revenue of $849.6 million was just below expectations for $850.8 million.
The company reported strong visitations and spending growth from local skiers, while destination guest visitation was largely in line with expectations.
Skier visitation at the company's resorts, including those in Colorado and Utah, jumped 27% as total effective ticket price decreased 7.8% in the quarter compared to the prior year, primarily due to "higher skier visitation by season pass holders and the impact of the new military epic pass," the company said. This was partially offset, however, by price increases in both its lift ticket and season pass products. In addition, there has been ample snow at its resorts this winter, the company said.
The above-consensus earnings comes just months after the company in January trimmed its performance outlook for the fiscal year, after reporting destination guest visitation rates came up short prior to the holidays.
"As noted in our January press release, we are lowering our guidance for fiscal 2019, primarily due to the disappointing results from destination visitation in the pre-holiday period and also due to shortfalls from expectations at our Tahoe resorts and Whistler Blackcomb," the company said.
The company reduced fiscal 2019 net income guidance to a range of $268 million to $300 million from a prior range of $288 million to $335 million.
On a less somber note, the skiing resorts company hiked its quarterly dividend 20% to $1.76 per share from $1.47 per share in the prior quarter.
The stock has had a volatile run since peaking at $302.76 in early October. It fell to $179.60 in early January before rebounding.