Vail Resorts, Inc. MTN reported second-quarter fiscal 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Both the metrics increased on a year-over-year basis.

See Zacks Earnings Calendar to stay ahead of market-making news.

Vail Resorts reported strong quarterly results, with the resort reported EBITDA rising 8% year over year. It stated benefits from the stability of its season pass program, ongoing investments in guest experience and solid execution across its mountain resorts. Although the company reported improved visitation at North American resorts, industry demand normalization and a shift in destination guest travel to spring impacted overall trends. The company reported lower destination guest visitation at Western North American mountain resorts, reflecting a broader industry shift toward later-season travel.

The company remains on track with its two-year resource efficiency transformation plan, announced in September 2024. Through scaled operations, global shared services and enhanced workforce management, MTN aims to drive operational efficiencies and cost savings. The initiative is expected to deliver cost efficiencies in fiscal 2025 and generate $100 million in annualized savings by the end of fiscal 2026.

Following the results, the company shares gained 2.9% in the after-hours trading session yesterday.

MTN’s Q2 Earnings & Revenues

Vail Resorts, Inc. Price, Consensus and EPS Surprise

Vail Resorts, Inc. price-consensus-eps-surprise-chart | Vail Resorts, Inc. Quote

In the quarter under review, the company reported diluted earnings per share (EPS) of $6.56, beating the Zacks Consensus Estimate of $6.29. In the prior-year quarter, the company reported EPS of $5.76.

Quarterly net revenues amounted to $1.14 billion, missing the consensus mark by 0.06%. The top line increased 5.5% on a year-over-year basis.

Segmental Results of MTN

Vail Resorts reports through two segments: Mountain and Lodging.

Mountain: This segment generated net revenues of $1.06 billion in the quarter under review, up 6.3% year over year. The figure compares with our model’s projection of $1.055 billion. In the fiscal quarter, revenues from dining inched up 10.8% year over year to $90.9 million. Revenues from retail/rental declined 0.7% year over year to $135.2 million. That said, revenues from ski school and lift increased 5% and 6.9%, respectively, year over year.

The segment’s reported EBITDA amounted to $457.6 million in the fiscal second quarter compared with $420.3 million reported in the year-ago quarter. Operating expenses totaled $606 million, up 4.7% year over year.

Lodging: Total net revenues in the reported quarter were $74 million, down 5% year over year. The figure compares with our projection of $88.5 million.

In the fiscal quarter, the segment’s EBITDA was $2 million compared with $4.7 million reported in the year-ago quarter. Operating expenses in the segment declined 1.6% year over year to $71.9 million.

Operating Results of MTN

Vail Resorts reported a consolidated EBITDA of $458.1 million in the fiscal quarter, up from $423.5 million reported in the year-ago quarter. Operating expenses totaled $679.9 million compared with $653.8 million reported in the year-ago quarter.

MTN’s Balance Sheet

Cash and cash equivalents as of Jan. 31, 2025, totaled $488.2 million compared with $812.2 million reported in the year-ago quarter.

Net long-term debt amounted to $2.11 billion at the end of the fiscal second quarter compared with $2.72 billion as of Jan. 31, 2024.

As of Jan. 31, 2025, the company had total cash and revolver availability of approximately $1.7 billion. This includes $488 million cash in hand, $509 million of U.S. revolver availability under the Vail Holdings Credit Agreement and $204 million of revolver availability under the Whistler Credit Agreement.

Other Updates of MTN

The company provided an update on key ski season metrics for its North American destination mountain resorts and regional ski areas, covering the period from the start of the season through March 2, 2025, compared to the prior year's period through March 3, 2024.

Season-to-date skier visits declined by 2.5% year over year, while total lift ticket revenues (including an allocated portion of season pass revenues) increased 4.1% year over year. Ski school and dining revenues reported growth of 3.0% and 3.1%, respectively, whereas retail and rental revenues for North American resort locations declined by 2.9% year over year.

Strong local visitation (driven by improved early-season conditions) and solid ancillary spending per destination guest, particularly in ski school and dining, added to the positives. The company stated that destination visitation was impacted by industry demand normalization and a shift in guest travel to the spring.

MTN Raises Fiscal 2025 Guidance

In fiscal 2025, net income (attributable to Vail Resorts) is now estimated in the range of $257-$309 million, compared with the prior expected band of $240-$316 million.

Total reported EBITDA is now expected to be between $854 million and $896 million, compared with the prior expected range of $844-$906 million.

Resorts reported EBITDA is expected in the range of $841 million to $877 million compared with the previous expectation of $838-$894 million. Resorts reported an EBITDA margin is anticipated to be 28.8%, using the midpoint of the guidance.

MTN’s Zacks Rank and Stocks to Consider

Currently, Vail Resorts carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.

RCI Hospitality Holdings, Inc. RICK currently sports a Zacks Rank #1 (Strong Buy). RICK delivered a trailing four-quarter earnings surprise of negative 62.9%, on average. The stock has declined 18.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RICK’s 2025 sales and earnings per share (EPS) indicates growth of 2.5% and 1,278.8%, respectively, from year-ago levels.

Carnival Corporation & plc CCL currently carries a Zacks Rank #2 (Buy). CCL delivered a trailing four-quarter earnings surprise of 326.4%, on average. The stock has gained 17.5% in the past year.

The Zacks Consensus Estimate for CCL’s 2025 sales and EPS indicates growth of 4% and 25.4%, respectively, from year-ago levels.

Royal Caribbean Cruises Ltd. RCL currently carries a Zacks Rank #2. RCL delivered a trailing four-quarter earnings surprise of 15.7%, on average. The stock has surged 59.7% in the past year.

The Zacks Consensus Estimate for RCL’s 2025 sales and EPS indicates growth of 9.1% and 26.3%, respectively, from year-ago levels.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Carnival Corporation (CCL) : Free Stock Analysis Report

Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report

RCI Hospitality Holdings, Inc. (RICK) : Free Stock Analysis Report

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research