Vail Resort Inc. (NASDAQ: MTN) has confirmed that it is set its fiscal Q2 2022 earnings report on Monday, March 14, 2022, after market close.
What to look for: the company's Q22 2022 results are likely to reflect solid performance attributed to robust revenues and the North American ski season. When the company releases its results, the focus will be on how it has rebounded from the pandemic-induced slump in the business in 2020 and early last year. However, the mid-season update provided on January 14, 2022, shows that their ski season got off to a slow start due to challenging season conditions because of the Omicron variant. As a result, ski visits dropped 18% relative to pre-pandemic levels, and the expected results will show if the company is feeling cash pressures due to the pandemic.
Earnings: Stockearning’s Estimated EPS for fiscal Q2 2022 is expected to be $5.73 per share, reflecting a YoY increase of 58.3% from $3.62 reported in fiscal Q2 2021. In the fiscal Q1 2022, the company produced an earnings surprise of 5.75%, with an EPS loss of $3.44 compared to a predicted EPS loss of $3.65 per share. Historical EPS Performance for the past 12 quarters indicates that the company has topped estimates 23 times (63%), met once (2%), and missed 12 times (33%).
Revenue: The company is expected to report revenue of $966.3 million inQ2 2022, suggesting a 41.1% YoY increase. The mid-season update indicated that lift ticket revenues were up 25.9% YoY but dropped 4.6% compared to the fiscal 2020 season. Ski school revenues were up 59.1%, with dining revenues increasing 64.7% YoY. In addition, the company reported that rental/retail revenues for North American Ski and resort area locations were up 36.3%.
Stock Movement: MTN shares have lost 29.4% since the company released its last earnings release. Interestingly, following the earnings release, the company's shares have been UP 25 times in the past 47 quarters. So, the historical price reaction suggests a 53% probability of the share price going UP following the earnings release. According to the Stockearning algorithm, the predicted volatility on the first day is +/-4%, while the predicted volatility on the seventh day is +/-5%.
What analysts are saying: Truist analyst Patrick Scholes slashed his price target on the stock from $322 to $302 but maintained a Hold rating in the shares. Despite the continued "negative drumbeat" from consumers and the media concerning the group's Park City, Midwest, NH, and WA resorts, the analyst adds that the worries he previously stated about the company's workforce shortfall affecting customer satisfaction remain an issue. To prevent "epic unfavorable media attention," Scholes believes Vail would have to increase salaries for the 2022/2023 ski season.
JPMorgan analyst Omer Sander slashed his price target on MTN from $345 to $314 and maintained a Hold rating on the shares. Until the firm's 2022/2023 ticket pricing plan is revealed, presumably, the analyst anticipates the stock to trade in a range in March. However, he likes Vail's move to a more advanced commitment approach in the long run, which he claims helps "derisk" the skiing season and helps sustain mid-single-digit EBITDA growth.
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