Vail Resorts Stock Tumbles as Low Snowfall Impacts Q3 Results

Shares of Vail Resorts (MTN) headed downhill Friday, a day after the operator of ski resorts posted worse-than-expected results and cut its guidance as a lack of snowfall reduced demand.

The company reported third-quarter fiscal 2024 earnings per share (EPS) of $9.54, with revenue increasing 3.6% year-over-year to $1.28 billion. Both were short of analysts’ estimates compiled by Visible Alpha.

Vail CEO Notes ‘Unfavorable Conditions’ During Ski Season

Chief Executive Officer (CEO) Kirsten Lynch said Vail faced “unfavorable conditions across our North American resorts for a large portion of the 2023/2024 North American ski season.” She noted year-over-year snowfall totals were about 28% lower for the full winter season across the company’s western North American resorts, and there were variable temperatures and limited natural snow at its Midwest, Mid-Atlantic, and Northeast operations.

She added that for the 2023/2024 ski season in both North America and Europe, year-over-year skier visits dropped 7.7%, and skier visitation from lift ticket guests slumped 17%. Lynch attributed the decline to a combination of unfavorable conditions and “broader industry normalization post-COVID following record visitation in the U.S. during the 2022/2023 ski season.”

Vail now sees full-year net income attributable to the company in a range of $224 million to $256 million, down from the previous outlook of $270 million to $325 million. The company noted that the costs related to the acquisition of Crans-Montana resort in Switzerland will reduce earnings before interest, taxes, depreciation, and amortization (EBITDA) by $12 million, three times its previous estimate.

Vail Resorts shares traded down 13.5% at of 10:15 a.m. ET Friday to $167.89, their lowest point since the early part of the COVID-19 pandemic in 2020.