BROOMFIELD, Colo. - Vail Resorts, Inc. (NYSE:MTN) experienced a 6.96% decline in its stock price following the announcement of its second-quarter fiscal 2024 financial results, which fell short of Wall Street expectations.
The company reported an adjusted EPS of $5.76, missing analysts' predictions of $6.04. Revenue also did not meet the anticipated figures, coming in at $1.08 billion against a consensus estimate of $1.15 billion.
The company's second-quarter net income increased to $219.3 million from $208.7 million in the same period last year. However, this increase was overshadowed by a decrease in total skier visits by 9.7% and a 9.3% decline in retail/rental revenue for North American resort and ski area store locations. Despite these challenges, season-to-date ski school revenue saw a 5.5% increase, and total lift revenue rose by 2.6%.
Vail Resorts' CEO, Kirsten Lynch, commented on the quarter's performance, attributing the resilience in the face of unfavorable conditions to the company's strategic business model and network of resorts. "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," Lynch stated.
Looking ahead, Vail Resorts has adjusted its fiscal 2024 guidance, now expecting net income to be between $270 million and $325 million and Resort Reported EBITDA to range from $849 million to $885 million. This includes an estimated $4 million of acquisition-related expenses for Crans-Montana but excludes any estimate for closing costs, operating results, or integration expenses associated with the acquisition.
The revised guidance reflects a cautious outlook, taking into account the underperformance to date and the expectation of improved performance for the remainder of the season. The company is betting on a shift in visitation patterns into March and April, supported by a strong base of pre-committed guests and historical behavior patterns, as well as improved conditions at their resorts.
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