Vail Resorts (MTN) Raises Outlook on Improving Visitation
Vail Resorts, Inc. MTN recently raised its guidance for nine months ending Apr 30, 2021 courtesy of better-than-expected performance in the month of March and April. Despite the pandemic, the company continues to witness improvement in results. Following the news, the company’s shares gained 3.3% on Apr 22.
The company now anticipates net income for the nine months ending Apr 30, 2021 in the range of $258 million to $280 million, up from the prior estimate of $204 million to $247 million. It now anticipates reported resorts EBITDA in between $636 million and $650 million, compared with the prior estimate of $560 million to $600 million.
The company has been witnessing improvement in visitations at Colorado and Utah resorts. It informed that local visitation remained mostly in line with the expectations. However, Canadian border, which remained closed to international guests, continues to impact Whistler Blackcomb's performance.
Rob Katz, CEO said "We are very pleased with the response to our season pass sales launch. The pace of sales has been strong over the first month of the selling period, and we are seeing great guest enthusiasm for the enhanced value proposition of our products.”
Stock Performance
Shares of the company have gained 17.1% year to date, compared with the industry’s growth 15.1%. Vail Resorts continues to reinvest in its resorts to boost customer traffic. Moreover, the company is increasingly focusing on digital marketing and media advertising to drive traffic and sales. Vail resorts completed one of its final stage of modernization project and invested in technology to program its data-driven marketing efforts.
Zacks Rank & Key Picks
Vail Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector include Camping World Holdings, Inc. CWH, RCI Hospitality Holdings, Inc. RICK and SeaWorld Entertainment, Inc. SEAS. Camping World Holdings sports a Zacks Rank #1, while RCI Hospitality and SeaWorld Entertainment carry a Zacks Rank #2 (Buy).
Camping World has a three-five year earnings per share growth rate of 34.7%.
RCI Hospitality 2021 earnings are expected to improve 241.2%.
SeaWorld Entertainment 2021 earnings are expected to surge 96.7%.
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