Vail Resorts Falls 3.5% After Q3 EPS Miss and Outlook Cut
MTN•Vail Resorts reported Q3 EPS of $8.81 and $1.21 billion revenue, missing profit expectations and prompting a full-year guidance cut after its worst winter in four decades. Shares slid 3.5% while analysts trimmed price targets by up to $19 and brokerages maintained mostly hold or sell ratings.
1. Q3 Financial Results
Vail Resorts delivered fiscal third-quarter EPS of $8.81 on $1.21 billion in revenue, missing profit expectations while matching sales forecasts. The earnings shortfall marked a notable deviation from prior quarters and raised concerns over seasonal performance.
2. Full-Year Guidance and Winter Impact
The company cited its worst winter in 40 years as the primary driver for reduced skier visitation and revenue, leading to a downward revision of full-year guidance. Management warned that continued weather volatility could further pressure margins in the upcoming quarters.
3. Market Reaction and Analyst Response
Shares declined 3.5% at the open, breaking below resistance at the $140 level and the 200-day moving average. Eight of 12 brokerages now hold or recommend selling the stock, with price targets cut by as much as $19, while short interest remains elevated at over 20% of float.
