Vail Resorts (NYSE:MTN) is a Broomfield, Colorado-based company that operates mountain resorts and regional ski areas in the United States. This stock recently ran into a bout of turbulence following a recent earnings release. Should investors be discouraged? How does the stock look for the long term? Let’s jump in.
The travel and leisure sector has delivered strong growth in the years following the COVID-19 pandemic. Hospitality will be a beneficiary of that ongoing trend, though companies will need to learn how to adjust and appeal to a client base that has been squeezed by inflation and the highest interest rates in roughly two decades.
PricewaterhouseCoopers (PwC) recently released its report on the hospitality space and hotels. It noted that US hotels had continued to exceed expectations despite various headwinds, including recession, bank failures, and a liquidity crisis. The report warned that hotel performance could experience a downward trajectory in 2024 and into 2025.
This company released its second quarter (Q2) fiscal 2024 earnings on Monday, March 11. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, aiming to give a clearer picture of a company’s profitability. Vail Resorts reported EBITDA of $425 million in Q2 FY2024. For the full year, Vail Reports now expects net income between $270 million and $325 million. Meanwhile, it is projecting adjusted EBITDA in the range of $849 million and $885 million.
Shares of Vail Reports have dropped 8.6% over the past six months as of close on Tuesday, March 12. The stock possesses a price-to-earnings ratio of 37. That puts Vail Reports in solid value territory compared to its peers. It also offers a quarterly dividend of $2.06 per share. That represents a 3.6% yield.
