Truist Cuts Vail Resorts Price Target to $195 After Q3 EPS Miss
MTN•Vail Resorts reported Q3 EPS of $8.81 versus $8.97 estimate and revenues of $1.21 billion, down from $1.30 billion year-over-year. Truist cut its price target to $195 (50.34% upside) and trimmed full-year profit guidance to $128–$162 million, citing severely poor snowfall.
1. Q3 Earnings Miss and Revenue Decline
Vail Resorts posted third-quarter earnings per share of $8.81, missing the consensus estimate of $8.97, while revenues fell to $1.21 billion from $1.30 billion in the prior year. This marks only one earnings beat in the past four quarters, highlighting a trend of softer demand.
2. Price Target Reduction by Truist
Truist Financial lowered its price target to $195 from $212, citing the earnings miss and revenue shortfall, while still implying a 50.34% upside from current levels. This reduction reflects growing analyst concern over near-term profitability.
3. Weather Impact on Operations
Management attributed the underperformance to extremely unfavorable snowfall, particularly across Rocky Mountain resorts, which weakened skier visits and resort revenues. The lack of early-season snow amplified this seasonal risk for the winter sports operator.
4. Guidance Cut for Full-Year Profit
Vail Resorts trimmed full-year profit guidance to a range of $128 million to $162 million, down from $144 million to $190 million previously projected. This guidance cut underscores the lingering impact of adverse weather on annual results.
