Vail Resorts Q3 Earnings Surpass Estimates, Revenues Miss, Stock Down

Vail Resorts, Inc. MTN reported third-quarter fiscal 2025 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. Both metrics increased on a year-over-year basis. Following the results, the company shares declined 1.3% in the after-hours trading session yesterday.

In the third quarter of fiscal 2025, Vail Resorts' performance showcased the stabilizing impact of its season pass program, according to CEO Rob Katz. Total resort net revenues, excluding the recently acquired Crans-Montana property, held steady compared with the prior year, while visitation declined 7%. Katz noted that destination visits from passholders improved in March and April, aligning with expectations. However, visits from uncommitted lift ticket guests fell short of projections.

MTN’s Q3 Earnings & Revenues

In the quarter under review, the company reported earnings per share (EPS) of $10.54, beating the Zacks Consensus Estimate of $10. In the prior-year quarter, the company reported EPS of $9.54.

Quarterly net revenues amounted to $1,295.6 million, missing the consensus estimate of $1,303 million. However, the top line increased 1% on a year-over-year basis.

Segmental Results of MTN

Vail Resorts reports through two segments, Mountain and Lodging.

Mountain: This segment generated net revenues of $1.2 billion in the quarter under review, up 1.4% year over year. The figure compares with our model’s projection of $1.21 billion. In the fiscal third quarter, revenues from dining inched up 1.4% year over year to $111 million. Revenues from retail/rental declined 7.8% year over year to $113.7 million. That said, revenues from ski school and lift decreased 0.6% and increased 3.3%, respectively, year over year.

The segment’s reported EBITDA amounted to $635.4 million in the fiscal third quarter compared with $638.6 million reported in the year-ago quarter. Operating expenses totaled $577.8 million, up 3.4% year over year.

Lodging: Total net revenues in the reported quarter were $82.9 million, down 4.8% year over year. The figure compares with our projection of $101.9 million.

In the fiscal quarter, the segment’s EBITDA was $12.3 million compared with $15.8 million reported in the year-ago quarter. Operating expenses in the segment declined 0.9% year over year to $70.6 million.

Operating Results of MTN

Vail Resorts reported a consolidated EBITDA of $654.1 million in the fiscal quarter, up from $653.3 million reported in the year-ago quarter. Operating expenses totaled $650 million compared with $631.1 million reported in the year-ago quarter.

MTN’s Balance Sheet

Cash and cash equivalents as of April 30, 2025, totaled $467 million compared with $705.4 million reported in the year-ago quarter.

Net long-term debt amounted to $2.1 billion at the end of the fiscal third quarter compared with $2.7 billion as of April 30, 2024.

As of April 30, 2025, the company had total cash and revolver availability of approximately $1.6 billion.

Other Updates of MTN

Vail Resorts reported a slight dip in season pass sales for the upcoming ski season in North America. As of May 27, 2025, the company saw a 1% decline in the number of passes sold compared with the same period last year. However, total sales dollars rose approximately 2%.

Katz attributed the modest increase in revenues to a 7% price hike for the 2025-2026 season. This gain was partially offset by a higher mix of Epic Day Pass products, which tend to generate lower revenue per unit. Katz also acknowledged that macroeconomic uncertainty during the spring selling season might have influenced early buying behavior, though the extent of that impact remains unclear.

MTN’s Fiscal 2025 Guidance

In fiscal 2025, net income (attributable to Vail Resorts) is now estimated in the range of $285-$313 million compared with the prior expected band of $257-$309 million.

Total reported EBITDA is now expected to be between $848 million and $870 million compared with the prior expected range of $854 million to $896 million.

Resorts reported EBITDA is expected in the range of $831 million to $851 million compared with the previous expectation of $841 million to $877 million.

MTN’s Zacks Rank and Stocks to Consider

Currently, Vail Resorts carries a Zacks Rank #3 (Hold).

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Stride, Inc. LRN currently carries a Zacks Rank of 2 (Buy). The company delivered a trailing four-quarter earnings surprise of 94.7%, on average. The stock has hiked 39.2% in the year-to-date period.

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This article originally published on Zacks Investment Research (zacks.com).

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