The 10-second takeaway
For the quarter ended April 30 (Q3), Vail Resorts beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share grew.
Gross margins dropped, operating margins dropped, and net margins improved.
Vail Resorts booked revenue of $421.1 million. The eight analysts polled by S&P Capital IQ expected sales of $413.3 million on the same basis. GAAP reported sales were 1.6% higher than the prior-year quarter's $414.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $2.17. The 10 earnings estimates compiled by S&P Capital IQ forecast $2.18 per share. GAAP EPS of $2.17 for Q3 were 4.3% higher than the prior-year quarter's $2.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.3%, 40 basis points worse than the prior-year quarter. Operating margin was 33.4%, 90 basis points worse than the prior-year quarter. Net margin was 18.9%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $107.2 million. On the bottom line, the average EPS estimate is -$1.58.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $0.36.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 311 members rating the stock outperform and 65 members rating it underperform. Among 149 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 139 give Vail Resorts a green thumbs-up, and 10 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 $52.71.
Over the decades, small-cap stocks, like Vail Resorts have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Vail Resorts to My Watchlist.
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. Motley Fool newsletter services have recommended buying shares of Vail Resorts. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.