U.S. Markets closed

Vail Resorts, Inc. Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Simply Wall St

Investors in Vail Resorts, Inc. (NYSE:MTN) had a good week, as its shares rose 2.6% to close at US$242 following the release of its first-quarter results. Sales of US$268m came in 4.0% ahead of expectations, although earnings didn't fare nearly so well, recording a loss of US$2.64, a 11% miss. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest forecasts to see whether analysts have changed their mind on Vail Resorts after the latest results.

See our latest analysis for Vail Resorts

NYSE:MTN Past and Future Earnings, December 13th 2019

Taking into account the latest results, the latest consensus from Vail Resorts's eleven analysts is for revenues of US$2.58b in 2020, which would reflect a solid 11% improvement in sales compared to the last 12 months. Earnings per share are expected to rise 6.4% to US$7.99. In the lead-up to this report, analysts had been modelling revenues of US$2.56b and earnings per share (EPS) of US$7.98 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$260, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Vail Resorts analyst has a price target of US$280 per share, while the most pessimistic values it at US$235. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.

It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the Vail Resorts's past performance and to peers in the same market. Next year brings more of the same, according to analysts, with revenue forecast to grow 11%, in line with its 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.3% per year. So it's pretty clear that Vail Resorts is forecast to grow substantially faster than its market.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Vail Resorts's revenues are expected to grow faster than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Vail Resorts. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Vail Resorts going out to 2024, and you can see them free on our platform here..

You can also view our analysis of Vail Resorts's balance sheet, and whether we think Vail Resorts is carrying too much debt, for free on our platform here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

  • 7 ‘A’-Rated Dividend Stocks That Provide Inflation-Beating Income
    Business
    InvestorPlace

    7 ‘A’-Rated Dividend Stocks That Provide Inflation-Beating Income

    It means these stocks have decided to take some of their net income and deliver it back shareholders on a regular basis. Yes, the stocks rise and the companies grow, but some of that cash for expansion is returned to shareholders on a regular basis. Some industries are famous for their income — real estate investment trusts, utilities, master limited partnerships.

  • This basket of dividend growth stocks can help your portfolio stand out in 2020
    Business
    MarketWatch

    This basket of dividend growth stocks can help your portfolio stand out in 2020

    Analysts at Goldman Sachs are highlighting a “dividend growth basket” of stocks at a time when valuations for the U.S. stock market have shot up to their second-highest level since June 2002. In the firm's recent “U.S. Weekly Kickstart” report Jan. 3, the analysts, led by David Kostin, recommended investors be cautious and look for “growth at a reasonable price,” but also included a group of dividend stocks with low price-to-earnings valuations relative to the S&P 500 (SPX) that also appear likely to continue raising their dividend payouts more quickly than the broader market.

  • Boeing's 777X jetliner successfully completes maiden flight
    Business
    Reuters

    Boeing's 777X jetliner successfully completes maiden flight

    Boeing Co successfully staged the first flight of the world's largest twin-engined jetliner on Saturday in a respite from the crisis over its smallest model, the grounded 737 MAX. The 777X, a larger version of the 777 mini-jumbo, touched down at the historic Boeing Field outside Seattle at 2 pm (2200 GMT) after a debut which began almost four hours earlier at Boeing's revamped wide-body assembly lines north of the city. The decision to take advantage of a gap in clouds to start the months of testing needed before the jet can carry passengers came after two attempts had to be postponed due to high winds.

  • 4 Bank Stocks to Sell and 4 Cash-Generating Alternatives to Buy
    Business
    InvestorPlace

    4 Bank Stocks to Sell and 4 Cash-Generating Alternatives to Buy

    First I was with Merrill Lynch International Bank, then with the boutique Mark Twain Bank — now part of U.S. Bancorp (NYSE:USB) — and onto Investec. The key to banking is to gather deposits, seek out opportunities to make loans, cut costs and maximize fee income  — and make absolutely sure that you know how the bank will get paid interest and principal. There are specific metrics to measure how a bank is faring.

  • Roth IRA Contributions with No Job?
    Business
    Investopedia

    Roth IRA Contributions with No Job?

    The internal Revenue Service (IRS) gets a little grumpy if you contribute to a Roth individual retirement account (IRA) without what it calls earned income. You don't necessarily need a formal job to contribute to a Roth IRA. Although it's not true in all cases, if you're paying taxes on any type of income from working, there's a good chance that you can make Roth IRA contributions.

  • One of the most successful stock-market investors says these 3 events ‘would definitely trigger a bear market’
    Business
    MarketWatch

    One of the most successful stock-market investors says these 3 events ‘would definitely trigger a bear market’

    Stanley Druckenmiller, one of Wall Street's most successful investors, acknowledges that the markets are riding high and that investors may be able to finally breathe freely in the short term after a number of shocks, but says investors should be wary of three events that could knock assets into a bear market. One of the reasons I'm pretty sanguine right now is I think we're close enough to the election, at least we can breathe for a few months,” he told Bloomberg Television during a recent interview. But there are a trio of situations that could upend that optimism — and perhaps permanently.

  • 3 Monster Growth Stocks That Are Ready for the Next Leg Higher
    Business
    TipRanks

    3 Monster Growth Stocks That Are Ready for the Next Leg Higher

    With no price increases expected for three years and little to no competition anticipated from Novartis' recently released ADAKVEO antibody treatment for sickle cell disease, the analyst thinks the market opportunity is large. Bearing this in mind, she bumped up the price target from $120 to $143 in addition to maintaining her bullish call. To watch Moussatos' track record, click here) In terms of the rest of the Street, a majority of analysts also see GBT as a Buy, 13 out of 16 to be exact.

  • Business
    U.S.News & World Report

    7 Best Vanguard Funds to Buy and Hold

    It offers a five-year average return of 7.23% and an expense ratio of 0.14%. Year-to-date, VASGX has delivered a 23.13% return. VITSX is one of the best Vanguard mutual funds for buy-and-hold investors who want broad exposure to the stock market as a whole.

  • Pfizer Inc. (NYSE:PFE) Looks Interesting, And It's About To Pay A Dividend
    Business
    Simply Wall St.

    Pfizer Inc. (NYSE:PFE) Looks Interesting, And It's About To Pay A Dividend

    Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. That's why it's good to see Pfizer paying out a modest 49% of its earnings. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow.

  • Adam Schiff's Closing Remarks at Impeachment Trial Disturbs Some GOP Senators
    Politics
    Meredith Videos

    Adam Schiff's Closing Remarks at Impeachment Trial Disturbs Some GOP Senators

    Senate Republicans said lead impeachment prosecutor Adam Schiff insulted them during the trial by repeating an anonymously sourced report that the White House had threatened to punish Republicans who voted against President Donald Trump.

  • Politics
    Bloomberg

    Warren Responds to ‘Angry Dad’ Over Student Loan Plan

    In a clip shared on an anonymous pro-Trump Twitter account Tuesday and amplified by conservative media, an unnamed man tells Warren that he gave up vacations and saved money for his daughter's education so that she wouldn't have debt. Asked about the clip in an interview on “CBS This Morning,” Warren responded that younger Americans are getting “crushed” by student loan debt, which is roughly $1.5 trillion.

  • It’s High Time to Hop Off The Nio Train
    Business
    InvestorPlace

    It’s High Time to Hop Off The Nio Train

    According to a Jan. 17 SEC filing, UK investment management firm Baillie Gifford has increased its stake in Nio (NYSE:NIO), the up-and-coming Chinese electric vehicle manufacturer. At this time last year, Baillie Gifford owned 11% of NIO. Already the company's largest shareholder, the fact that it's increased its stake by 19% in just one year suggests Baillie Gifford has a good feeling about Nio's future.

  • Freeport McMoRan Is the Best Stock to Buy for 2020
    Business
    InvestorPlace

    Freeport McMoRan Is the Best Stock to Buy for 2020

    The terms “artificial intelligence” and “copper miner” do not obviously relate to one another. One of the world's largest copper producers, this company has been testing an artificial intelligence, or “machine learning,” model at its Bagdad copper mine in Arizona. This machine learning model uses data from sensors around the mine to “tailor” the ore processing method to each of the seven distinct types of ore that come from it.

  • Intel Corporation Just Beat EPS By 7.8%: Here's What Analysts Think Will Happen Next
    Business
    Simply Wall St.

    Intel Corporation Just Beat EPS By 7.8%: Here's What Analysts Think Will Happen Next

    It's been a pretty great week for Intel Corporation (NASDAQ:INTC) shareholders, with its shares surging 15% to US$68.47 in the week since its latest full-year results. The result was positive overall - although revenues of US$72b were in line with what analysts predicted, Intel surprised by delivering a statutory profit of US$4.71 per share, modestly greater than expected. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of.

  • 6 Social Security Changes for 2020
    Business
    Investopedia

    6 Social Security Changes for 2020

    Every October the Social Security Administration (SSA) announces its annual changes to the Social Security program for the coming year. Here are the Social Security changes that were announced in October 2019 and took effect on Jan. 1, 2020, according to the SSA's annual fact sheet. For 2020, more than 64 million Social Security recipients are seeing a 1.6% cost-of-living adjustment (COLA) to their monthly benefits. The adjustment helps benefits keep pace with inflation and is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as calculated by the Bureau of Labor Statistics (BLS).

  • Why Pressure on Huawei Isn’t Going to Save Nokia Stock
    Business
    InvestorPlace

    Why Pressure on Huawei Isn’t Going to Save Nokia Stock

    At this point, Nokia (NYSE:NOK) is a 5G (fifth-generation) wireless play. And one of the potential drivers of Nokia's growth in 5G is political pressure on key rival Huawei. The combination of a growing market and a weakened competitor has been a key pillar of the bull case for Nokia stock.

  • Theranos Founder Elizabeth Holmes Phones In Her Defense 
    Business
    Bloomberg

    Theranos Founder Elizabeth Holmes Phones In Her Defense 

    Unable to pay her lawyers in an Arizona fraud lawsuit, former Theranos Inc. Chief Executive Officer Elizabeth Holmes is defending herself by phone. Bloomberg's Heather Smith has more on "Bloomberg Markets."

  • How the stock market has performed during past viral outbreaks, as epidemic locks down 16 Chinese cities
    World
    MarketWatch

    How the stock market has performed during past viral outbreaks, as epidemic locks down 16 Chinese cities

    According to Dow Jones Market Data, the S&P 500 posted a gain of 14.59% after the first occurrence of SARS back in 2002-03, based on the end of month performance for the index in April, 2003. About 12 months after that point, the broad-market benchmark was up 20.76% (see attached table): SARS resulted in a total of about 8,100 people being sickened during the 2003 outbreak, with 774 people dying, according to data from WHO and the Centers for Disease Control and Prevention. Separately, the S&P 500 rose 11.66% in the roughly six months following reports of the 2006 Avian flu virus — a fast-moving pathogen also known as H5N1.

  • Why Plug Power Stock Could Rise 50% This Year
    Business
    InvestorPlace

    Why Plug Power Stock Could Rise 50% This Year

    Shares of hydrogen fuel cell (HFC) maker Plug Power (NASDAQ:PLUG) were red hot in 2019. If management can deliver on those goals (or anything close to those goals, for that matter), then Plug Power's growth trajectory will remain robust for a lot longer, and PLUG stock will continue to rally in a big way.

  • Head of U.S.’ largest bank says central banks are fueling a sovereign debt bubble, negative-rates won’t ‘end well’
    Business
    MarketWatch

    Head of U.S.’ largest bank says central banks are fueling a sovereign debt bubble, negative-rates won’t ‘end well’

    Jamie Dimon doesn't have much positive to say about negative interest rates in Europe and Japan or public policy in the United States during the past decade. The JPMorgan Chase & Co. (JPM) Chairman and CEO blasted the policy of negative interest rates adopted in Europe and Japan during an interview with CNBC, while arguing that economic growth in the U.S. could have been nearly double its actual rate if the government policy had been better. Dimon took aim at fiscal and other economic policies in place at the U.S. federal level.

  • Toll Brothers gears up to sell 2,200 homes in the West Valley
    Business
    American City Business Journals

    Toll Brothers gears up to sell 2,200 homes in the West Valley

    The 780-acre community includes 13 model homes and three community pools. It also will include an 18-hole Jack Nicklaus-designed private golf facility, which is the first golf course to be built in the West Valley in nearly a decade. The golf course is expected to be completed by January 2021, with a 35,000-square-foot clubhouse to be completed soon after, said Ryan Stemsrud, general manager for Sterling Grove Golf Club.

  • Key Catalysts Will Get Risky Aurora Stock Back On Track
    Business
    InvestorPlace

    Key Catalysts Will Get Risky Aurora Stock Back On Track

    Aurora Cannabis (NYSE:ACB) has pulled a nice rally during the past couple weeks. A year ago ACB was fetching a much more robust price of $10. As for Aurora, there are certainly some bigtime challenges for the company.

  • Business
    Barrons.com

    A Giant Fund Sold Apple and Costco Stock. Here’s What It Bought.

    Dutch pension giant PGGM made some major moves in its U.S.-traded stock investments. In the fourth quarter, PGGM initiated a stake in (V) stock (ticker: V), and tripled its investment in (MSFT) stock (MSFT). PGGM disclosed the trades, among others, in a form it filed with the Securities and Exchange Commission.

  • AMD Stock Could Run 40% Higher Closer to $70 in 2020
    Business
    InvestorPlace

    AMD Stock Could Run 40% Higher Closer to $70 in 2020

    AMD Is Crushing Its Competition AMD could have another explosive year, especially as it gains market share from Intel. Invest in America's Most Trusted Brands With These 7 Stocks to Buy At the moment, Intel has yet to fully ease its processor shortages, which is causing notebook vendors to look to more of its competitions in 2020. Furthermore, AMD may also challenge NVDA dominance in 2020, as well with its “NVIDIA Killer.

  • Business
    Barrons.com

    A Giant Bank Bought Beyond Meat Stock and Sold Tesla Before Their 2020 Rallies

    Commerzbank bought 207,355 additional shares of Beyond Meat in the fourth quarter, ending the year with 247,737 shares. Beyond Meat stock tripled in value last year from a $25 share price set at its May initial public offering; at one point in 2019, though, shares were trading at nearly 10 times the IPO price. Commerzbank had been buying Beyond Meat stock in the third quarter, as well.