Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
On Tuesday, shares of Vail Resorts (NYSE:MTN), a $5.75 billion market cap resort operator, saw an upward movement in after-market trading following the company’s fiscal second quarter earnings report, which surpassed expectations set by BofA Securities. According to InvestingPro data, the stock appears undervalued at its current trading price. Analyst Shaun Kelley at BofA Securities maintained a Neutral rating on the stock, along with a steady price target of $185.00.
Vail Resorts reported a robust fiscal second quarter with revenue and EBITDA figures coming in at $1.137 billion and $458 million, respectively. These results outperformed BofA’s projections of $1.109 billion in revenue and $446 million in EBITDA. The company’s performance provided a sense of relief to investors who have been navigating through uncertain market conditions and a series of recent earnings misses by other firms. InvestingPro analysis shows the company maintains a healthy 44.2% gross profit margin and offers an attractive 5.78% dividend yield, having maintained dividend payments for 14 consecutive years.
The company’s reaffirmation of its fiscal year 2025 Resort EBITDA target at $866 million, excluding a $7 million impact from foreign exchange headwinds, also contributed to the positive sentiment. Despite a significant year-to-date decline of 18.07% in the stock’s value and currently trading near its 52-week low of $151.99, the current earnings report and guidance have offered some reassurance. Get deeper insights into Vail Resorts’ valuation and 10+ additional exclusive ProTips with a subscription to InvestingPro.
According to Kelley, the combination of better-than-expected financial outcomes and strategic investor positioning are key factors in the post-earnings share price increase. He also noted that Vail Resorts’ strategy of pre-committed revenue and strong bookings, along with a favorable calendar, should mitigate risks for the remainder of the ski season. The focus now shifts to the company’s pass sales for the fiscal year 2026.
Investors responded optimistically to the news, as the company’s latest financial results and steady guidance appear to have provided a level of confidence in Vail Resorts’ ability to navigate through the remainder of the fiscal year. The company’s stock performance post-earnings reflects a positive reaction to the reported figures and the outlook provided by the company’s management.
In other recent news, Vail Resorts Inc . reported its financial results for the second quarter of fiscal year 2025, exceeding earnings expectations. The company achieved an earnings per share (EPS) of $6.56, surpassing the projected $6.30, while its revenue aligned with forecasts at $1.14 billion. Despite the positive earnings surprise, Vail Resorts’ stock experienced a mixed market reaction, with a 2.5% drop during regular trading hours. Analyst firms did not provide any notable upgrades or downgrades following the earnings announcement. Vail Resorts also reported a 4.1% increase in lift ticket revenue, despite a 2.5% decline in season-to-date ski visits. The company is projecting full-year net income between $257 million and $309 million, with Resort Reported EBITDA guidance ranging from $841 million to $877 million. Additionally, Vail Resorts is focusing on expanding its European market presence and has launched pass sales for the 2025-2026 season. The company has addressed concerns about labor costs and operational efficiencies, emphasizing its commitment to improving the guest experience.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.