Vail Resorts (NYSE:MTN) reported better-than-anticipated results for the fourth quarter of Fiscal 2022 (ended July 31, 2022) as business recovered strongly from the disruption caused by COVID-19 in the prior-year period. Revenue grew 31% to $267.1 million, ahead of analysts’ consensus estimate of $262.3 million. The strong top-line growth helped in narrowing Q4 Fiscal 2022 loss per share to $2.70 from $3.49 in the prior-year quarter. Analysts were expecting a loss per share of $2.92. The stock of Vail Resorts rose 4.1% in Wednesday’s extended trading session.
The company credited its Q4 performance to robust demand and visitation at its Australian resorts and the continued rebound in its North American summer operations from the pandemic-induced disruptions.
Overall, Vail’s Fiscal 2022 revenue increased 32.3% to $2.53 billion, recovering strongly above the pre-pandemic revenue of $2.27 billion in Fiscal 2019. The company achieved this growth rate despite staffing challenges and certain COVID-related restrictions.
Despite cost inflation and “industry-leading wage investment,” the company expects solid growth in Fiscal 2023 with strong resort EBITDA margins. It anticipates Fiscal 2023 net income in the range of $342 million to $411 million, compared to a net loss of $109.7 million in Fiscal 2022.
Is Vail Resorts Stock a Buy?
Wall Street is sidelined on MTN stock based on two Hold ratings. The average Vail Resorts stock price target of $257 implies 22.2% upside potential from current levels. Shares have declined 36% year-to-date as of September 28.
