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Vail Resorts (MTN) to Post Q1 Earnings: What's in the Cards?

Vail Resorts, Inc. MTN is scheduled to report first-quarter fiscal 2020 results on Dec 9, after the closing bell.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 14%.

Q1 Expectations

The Zacks Consensus Estimate for the bottom line in the fiscal first quarter is pegged at a loss per share of $2.99. In the year-ago period, the company incurred a loss of $2.43 per share. Of late, Vail Resorts’ earnings estimates were stable.

For quarterly revenues, the consensus mark stands at $259.1 million, implying a 17.8% improvement from the prior-year reported figure.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

Vail Resorts’ top line in the fiscal first quarter is likely to have benefited from robust performance of the Mountain segment. The Zacks Consensus Estimate for the segmental revenues is pegged at $165 million, suggesting 14.6% growth from the year-ago reported number. Increased focus on mergers and acquisitions along with effective marketing techniques continues to aid the company.

However, rising expenses for operations, acquisitions and pertinent weather-related woes persistently might have dented profitability. Vail Resorts’ business is highly dependent on weather conditions. Particularly, the ski business directly depends on the extent and timing of snowfall. Unfavorable weather conditions are likely to have affected skiers’ visits and in turn, hurt the company’s revenues and profits.

Vail Resorts, Inc. Price and EPS Surprise

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Vail Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.  

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Vail Resorts has a Zacks Rank #3 and an Earnings ESP of 0.00%.  

3 Stocks With Favorable Combination

Here are three companies worth considering as our model shows that these have the right combination of elements to beat on earnings:

Costco COST has an Earnings ESP of +1.01% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

G-III Apparel Group GIII has an Earnings ESP of +0.94% and a Zacks Rank of 3.

Big Lots BIG has an Earnings ESP of +3.85% and is Zacks #3 Ranked.

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Vail Resorts, Inc. (MTN): Free Stock Analysis Report
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