Vail Resorts (NYSE:MTN) Shares Gap Down Following Weak Earnings

Vail Resorts, Inc. (NYSE:MTN)’s share price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $133.94, but opened at $130.00. Vail Resorts shares last traded at $133.0950, with a volume of 585,074 shares traded.

The company reported $5.87 EPS for the quarter, missing the consensus estimate of $6.06 by ($0.19). Vail Resorts had a net margin of 7.89% and a return on equity of 28.14%. The company had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.11 billion. During the same period in the prior year, the firm earned $6.56 EPS. Vail Resorts’s quarterly revenue was down 4.7% compared to the same quarter last year.

Vail Resorts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Thursday, March 26th will be paid a $2.22 dividend. This represents a $8.88 annualized dividend and a dividend yield of 6.5%. The ex-dividend date is Thursday, March 26th. Vail Resorts’s payout ratio is currently 130.21%.

Key Vail Resorts News

Here are the key news stories impacting Vail Resorts this week:

• Positive Sentiment: Company kept its quarterly dividend at $2.22 per share (ex-dividend Mar 26, pay Apr 9), implying a roughly 6.6% yield — a potential support for the share price for income-focused investors.
• Positive Sentiment: Management highlighted offsetting strengths — Epic Pass renewals and geographic diversification helped cushion the season’s hit, which limits downside if weather normalizes. Warm Winter Hits Vail’s Earnings
• Neutral Sentiment: Analysts remain mixed — several firms trimmed price targets (JPMorgan, Barclays, Stifel, Deutsche Bank, Truist) but coverage still includes buy ratings and a consensus target that implies upside, leaving sentiment divided. Analyst Coverage and PT Moves
• Neutral Sentiment: After the earnings release the stock saw above-average volume as investors weighed the miss and guidance change — a sign the market is re-pricing near-term weather risk rather than changing the long-term thesis.
• Negative Sentiment: Q2 results missed expectations: EPS $5.87 vs. ~$6.06 est., revenue $1.08B vs. ~$1.11B est., and management cut FY26 net income guidance materially (now $144M–$190M vs prior $201M–$276M). That triggered the post-earnings selloff. Earnings Release
• Negative Sentiment: Severely below-average snowfall in the Rockies drove a ~12% decline in skier visits at key resorts, amplifying revenue pressure in the region that produces much of Vail’s EBITDA. Skier Visits Decline
• Negative Sentiment: Short interest jumped ~18% in February to about 4.95M shares (roughly 14% of float) with a ~5.8 days-to-cover — an indicator of growing bearish positioning that could pressure the stock on further negative news.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on MTN shares. BNP Paribas Exane reiterated an “outperform” rating on shares of Vail Resorts in a research report on Tuesday. Barclays reduced their price target on shares of Vail Resorts from $140.00 to $138.00 and set an “underweight” rating on the stock in a research report on Tuesday. UBS Group reaffirmed a “neutral” rating and set a $169.00 price objective on shares of Vail Resorts in a report on Friday, January 16th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Vail Resorts in a research note on Monday, December 29th. Finally, Zacks Research raised Vail Resorts from a “strong sell” rating to a “hold” rating in a report on Thursday, December 11th. Five investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Vail Resorts has an average rating of “Hold” and an average target price of $169.82.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. World Investment Advisors bought a new stake in shares of Vail Resorts during the third quarter valued at approximately $1,118,000. TD Waterhouse Canada Inc. increased its holdings in shares of Vail Resorts by 376.3% in the third quarter. TD Waterhouse Canada Inc. now owns 16,584 shares of the company’s stock valued at $2,553,000 after purchasing an additional 13,102 shares in the last quarter. Blume Capital Management Inc. raised its position in Vail Resorts by 317.0% in the 3rd quarter. Blume Capital Management Inc. now owns 9,703 shares of the company’s stock worth $1,451,000 after purchasing an additional 7,376 shares during the last quarter. Rice Hall James & Associates LLC raised its position in Vail Resorts by 11.4% in the 3rd quarter. Rice Hall James & Associates LLC now owns 115,724 shares of the company’s stock worth $17,309,000 after purchasing an additional 11,809 shares during the last quarter. Finally, Confluence Investment Management LLC acquired a new position in Vail Resorts during the 3rd quarter worth $8,160,000. Institutional investors and hedge funds own 94.90% of the company’s stock.

Vail Resorts Price Performance

The stock has a market capitalization of $4.85 billion, a P/E ratio of 22.13, a price-to-earnings-growth ratio of 8.17 and a beta of 0.78. The company has a debt-to-equity ratio of 5.52, a quick ratio of 0.46 and a current ratio of 0.54. The stock has a 50-day simple moving average of $137.54 and a 200 day simple moving average of $144.84.

About Vail Resorts

Vail Resorts, Inc is a leading mountain resort company that owns and operates an integrated network of ski areas, hotels, restaurants and retail outlets. The company’s signature Epic Pass program offers skiers and snowboarders season‐long access to its portfolio of resorts, while ancillary services such as ski and snowboard schools, equipment rental and retail drive additional revenue.

Headquartered in Broomfield, Colorado, Vail Resorts was formed in 1997, building on the legacy of Vail Associates, which opened the Vail ski area in 1962.