Proactive Investors - Vail Resorts (NYSE:MTN) shares fell more than 12% after its fiscal third quarter results took a hit from unfavorable conditions across its North American resorts for much of the 2023/24 ski season.
The company highlighted that the winter season included “significant” weather-related challenges, with approximately 28% less snowfall for the season across its Western North American resorts and limited natural snow and variable temperatures at its Eastern US resorts.
Total skier visits were down 7.7% year-over-year, attributed to unfavorable conditions and broader industry normalization post-COVID.
This was partially offset by “strong” ancillary spending across its ski school, dining and rental businesses at its resorts, Vail Resorts (NYSE:MTN) said.
It noted that, while late season results improved, it has lowered its full-year earnings before interest, taxes, depreciation and amortization (EBITDA) guidance to $833 to $851 million.
It had earlier forecast EBITDA between $849 million and $885 million.
The company attributed the reduction to lift ticket visitation not returning to typical historical spring behavior as expected in the March and April period, primarily at Whistler Blackcomb, along with lowered expectations for the fourth quarter of $9 million primarily related to the demand outlook for its Australian resorts.
For fiscal 3Q, the quarter ended April 30, 2024, Vail Resorts' revenue increased 3.6% year-over-year to $1.28 billion, missing estimates of $1.31 billion.
Earnings per share improved from $8.18 in the year-ago quarter to $9.54 but again fell short of the consensus of $9.94.
"Our results throughout the 2023/2024 North American ski season highlight both the stability provided by our season pass program and the investments we have made in our resorts and employees,” Vail Resorts CEO Kirsten Lynch commented.
Shares of Vail Resorts fell 12.3% to about $170 in early trade on Friday.