Vail Resorts Misses Where it Counts

Vail Resorts (NYSE: MTN  ) reported earnings on June 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q3), Vail Resorts met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded. GAAP earnings per share grew significantly.

Margins expanded across the board.

Revenue details
Vail Resorts notched revenue of $469.7 million. The 10 analysts polled by S&P Capital IQ predicted a top line of $474.2 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $421.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $2.66. The nine earnings estimates compiled by S&P Capital IQ anticipated $2.75 per share. GAAP EPS of $2.66 for Q3 were 23% higher than the prior-year quarter's $2.17 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.4%, 110 basis points better than the prior-year quarter. Operating margin was 35.2%, 180 basis points better than the prior-year quarter. Net margin was 20.8%, 190 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $117.6 million. On the bottom line, the average EPS estimate is -$1.61.

Next year's average estimate for revenue is $1.13 billion. The average EPS estimate is $1.12.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 328 members out of 408 rating the stock outperform, and 80 members rating it underperform. Among 157 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 give Vail Resorts a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vail Resorts is outperform, with an average price target of $66.67.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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