Vail Resorts Stock Hits 52-Week High on Q2 Results

Vail Resorts Inc. (NYSE:MTN) was formed as a result of a merger between Vail Associates and Ralston Resorts in 1996. A year later, it went public by pricing its shares at $22. Today, it is a leading ski resort company, operating popular ski destinations in the U.S. and Canada. It primarily makes money from ski schools, ski activities, restaurants, snow tubing, scenic trips, and hiking.

Travel and tourism industries were hit hard by the Covid-19 pandemic last year. Vail Resorts also struggled to boost its revenue due to the travel restrictions in place during the peak of the crisis. Nevertheless, Vail’s share price rose nearly 14 percent during 2020.

If we look at the latest financial performance, Vail Resorts recently reported better-than-expected results for the second quarter ended January 31. The company posted earnings of $147.8 million, or $3.62 per share for the quarter, well below $206.4 million, or $5.04 per share in the year-ago quarter. However, it managed to beat the consensus forecast of $2.26 per share.

Total revenue for the quarter declined 26 percent on a year-over-year basis to $684.6 million, better than analysts’ average estimate of $641.9 million. Revenue from the mountain segment slipped 11.1 percent to $430.8 million in the quarter, while revenue from the lodging segment plummeted 45.8 percent on a year-over-year basis mainly due to the operational restrictions as a result of the pandemic.

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However, CEO Rob Katz expressed satisfaction over Q2 results and said, “We experienced strong results in the quarter from both our local and destination guests, with local visitation up slightly compared to the same period in the prior year and destination visitation proving more stable than we expected.”

Vail Resorts shares hit a new 52-week high of $333.95 on Friday following the second-quarter results. Overall, the stock has advanced nearly 13 percent so far in 2021.

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