MTN - Vail Resorts: With Yields Approaching 5% Buy And Look Ahead To Next Season
2024-06-07 11:06:04 ET
Summary
- Vail Resorts dropped more than 10% after reporting Q3 results, which the company blamed on poorer ski conditions.
- The company's cut to guidance includes the negative impact from acquiring its second resort in Europe, which could be a long-term growth driver for the company.
- In spite of poor skiing conditions, the company grew revenue and adjusted EBITDA in Q3. Ski pass sales for the 2024/2025 season are also up in dollar terms.
- The company trades at a below-market P/E multiple and sports a rich 5% yield.
Sometimes, it's astonishing how many times the market will punish one stock for the same bad news. Such is the case for Vail Resorts ( MTN ), which has warned investors for two quarters of poor ski conditions due to warmer weather. Incidentally, none of this is company-specific information either; anybody with access to weather news or is a skier themselves will have known about warmer conditions....
Vail Resorts: With Yields Approaching 5%, Buy And Look Ahead To Next Season