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Vail Resorts Benefits From Higher Prices, Good Early Season Weather
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Main points
- Vail Resorts reported a smaller-than-expected first-quarter loss, but higher prices led to higher revenue.
- The ski resort operator also raised its guidance as early-season weather conditions allowed it to open some slopes earlier than expected.
- Vail Resorts plans to make capital investments of $249 million to $254 million in 2025.
Vail Resort (MTN) shares rose on Tuesday, a day after the ski resort operator reported better-than-expected results and raised guidance for price increases and good early-season weather.
The company reported a net loss of $4.61 per share, $0.50 less than the consensus estimate of analysts polled by Visible Alpha. Revenue was $260.3 million, up less than 1% but also beating expectations.
Sales of season pass products for the upcoming 2024/25 North American ski season were down 2% through Dec. 3, but were up 4% due to higher prices.
Chief Executive Officer (CEO) Kirsten Lynch said heading into the new ski season the company was encouraged by its loyal guests and weather conditions that gave it the opportunity to open some locations earlier than expected.
Vail Resorts raises fiscal year profit forecast
Vail Resorts raised its full-year net profit forecast attributable to the company to a range of US$240 million to US$316 million from the previous range of US$224 million to US$300 million.
The company also announced plans to invest $249 million to $254 million in its resorts by 2025. The total includes European growth capital investment and real estate-related capital.
Despite rising 3% today, Vail Resorts shares are down about 8% year to date.
trading view
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