Vail Resorts Set to Report Q3 Earnings – Is It a Good Investment Opportunity?

☀️Vail Resorts Inc (NYSE: MTN), the largest provider of mountain resort and lodging properties in North America, is set to report its Q3 2023 earnings on 08 June 2023. As we near the earnings release, let’s take a closer look at the company’s financial performance, recent price performance, past guidance, and analysts’ estimates to see whether it’s a good investment opportunity for investors.

Fundamental Analysis

Firstly, let’s take a look at Vail Resorts’ past year financials. In the last reported quarter, i.e., Q2 2023, the company posted revenue of $1.1 billion and net income of $209 million. A significant jump from the previous year’s same quarter where they only made $906.5 million in revenue and net income of $223.4 million.

One of the most critical metrics to focus on within the industry is skier visits. For Vail Resorts, skiing remains the core business with 32 mountain resorts and six urban ski areas across five states in the US and three major ski areas in Australia.

From Q2 2022 to Q2 2023, the company reported a 24% increase in total skier visits from approximately 12.9 million in the previous year to 16 million this year which is a great sign for investors. Although skier visitation is vulnerable to weather patterns, mainly snowfall in the winter seasons, recent snowfall has been enough to boost year-over-year numbers.

Technical Analysis

Since Q2 2023 earnings report in January, the company’s stock has gone up by approximately 50%. According to the latest data from Vail Resorts past 3-month price performance, the stock price has been rather stable while seeing a small decline near the end of May. The drop came after markets began to rise on inflation fears and Fed rate hikes.

Vail Resorts’ stock price has consistently seen significant fluctuations over the years, with investors in recent years being accustomed to large swings in the stock after an earnings report. Looking back at how the stock has fared over the past few years, there have also been some opportunities for traders to capitalize on short-term optimism or pessimism.

Historical Guidance

One can reasonably expect that Vail Resorts will provide guidance on its growth prospects for the 2022-2023 snow season during the Q3 earnings call. We know that in the previous year’s Q3 2022 earnings call results, Vail’s resort reported reaching full season pass sales with quite significant increases across all lines of business. This suggests that there may be sustained interest and demand in Vail’s resorts which is why the snowboarding/skiing industry is projected to grow.

Analysts Estimates

MorningStar estimates do not anticipate any surprises in Vail Resorts Q3 earnings report, with a consensus EPS estimate of $7.64 for this quarter, according to its estimate history. However, this quarter’s estimate is slightly lower compared to the company’s previous year same quarter report where they posted $9.16 earnings per share.

Some sell-side analysts forecast increased demand for Vail Resorts‘ services post-pandemic as people look to get outdoors and travel more frequently; others are more optimistic about its long-term prospects in the industry from a global perspective.

Conclusion

In conclusion, with the current state of the tourism and hospitality industry, Vail Resorts seems like a good buy for investors who are looking for a sustainable and relatively safe long-term investment opportunity. Considering Vail Resort’s financials, strong visitor trends and price performance over the past year, traders may look to capitalize on opportunities presented by volatility in their upcoming report.

Investors are eagerly anticipating Vail Resorts Q3 earnings call which will be announced in the coming week. The recent news sentiment about the call has also been positive, which gives further encouragement to investors. Overall, we suggest tuning into the earnings call to gain more insight into Vail Resorts‘ financial performance and decide whether it’s a good opportunity for investment for you.