Home News Vail Resorts Stock Reverses Losses After Dividend Boost, Results Hurt by Lack of Snow

Vail Resorts Stock Reverses Losses After Dividend Boost, Results Hurt by Lack of Snow

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Key Takeaways

  • Vail Resorts reported fiscal 2024 second-quarter earnings and revenue that missed estimates as it faced “challenging conditions” including a drop in snowfall. 
  • Vail reduced its guidance as ski season demand remained low.
  • The resort company also announced an increase in its quarterly dividend.
  • Vail shares initially sank following the release before rebounded in intraday trading Tuesday.

A lack of snow hurt demand at Vail Resorts (MTN), and the ski lodging provider cut its guidance. Vail also boosted its dividend. Shares initially fell following the release, before reversing losses in intraday trading Tuesday.

Vail Resorts reported fiscal 2024 second-quarter profit of $5.76 per share, with revenue declining 2.2% from a year ago to $1.08 billion. Both were below forecasts.

CEO Kirsten Lynch blamed “challenging conditions at all of our North American resorts.” She said snowfall through January across the Western part of the U.S. was down 42% from the previous year, and the company saw limited natural snow and variable temperatures in the Midwest, Mid-Atlantic, and Northeast regions.

Vail Resorts noted that season-to-date total skier visits decreased 9.7%, while lift revenue was up 2.6% through March 3, 2024 compared to last year.

Lynch said that because of the underperformance of the season so far, the company lowered its outlook. Vail Resorts now anticipates full-year net income of $270 million to $325 million, down from the earlier estimate of $316 million to $394 million. It projected resort reported earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between $849 million and $885 million, lower than the previous $912 million to $968 million.

The company announced that it was increasing its quarterly dividend from $2.06 to $2.22 per share, payable April 11 to shareholders of record on March 28.

Vail shares were up 0.5% at $225.92 as of noon ET Tuesday and have gained about 4% over the past year.


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