Vail Resorts reports Q2 EPS $5.16, consensus $6.10

Reports Q2 revenue $1.1B, consensus $1.07B. CEO Kirsten Lynch said, "Overall we are pleased with the strong guest experience being delivered at our resorts, supported by the investments we made in our resorts and in our employees, which enabled greatly improved staffing levels and employee satisfaction scores, a return to normal operations and strong guest satisfaction scores. Our ancillary businesses, including ski school, dining, and retail/rental, experienced strong growth compared to the prior year period…Across our 26 Midwest, Mid-Atlantic and Northeast resorts, collectively "Eastern" U.S. resorts, results for the quarter were negatively impacted by abnormal weather conditions, which significantly reduced operating days, terrain availability and activity offerings across the region which impacted demand and increased operating costs… In particular, results at our Eastern U.S. resorts were significantly below expectations in the post-holiday period, as conditions did not return to normal after the holidays as was incorporated in our guidance, with January having only 50-60% of lifts and terrain open during the period. Compared to 2Q22, resort net revenue increased approximately 21% and we achieved record Q2 visitation and resort net revenue as our ancillary lines of business continued to significantly outperform the prior year.,,Resort Reported EBITDA decreased approximately 1% from the prior year, as profitability was impacted by the investment in our employee and guest experience, early openings and expanded terrain at our western U.S. resorts, as well as increased operating costs from the abnormal weather conditions at our Eastern U.S. resorts…"