Why Vail Resorts Shares Popped

Updated

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ski-resort operator Vail Resorts (NYS: MTN) climbed 11% today after its quarterly results and guidance topped Wall Street expectations.

So what: Unseasonably warm weather battered the ski-resort industry in 2012, but a wide fourth-quarter beat -- a loss of just $1.50 per share versus the consensus loss of $1.56 -- coupled with an upbeat outlook for 2013 suggests that things are starting to turn around. In fact, sales of season passes through last weekend are already up 21% from the year-ago period, giving Wall Street analysts some positive visibility into the upcoming ski season.


Now what: Management now expects full-year 2013 earnings of $50 million to $60 million and sees year-over-year EBITDA growth of roughly 30%. "Our guidance for fiscal 2013 anticipates a return to more normal weather conditions and the continuation of a challenging, but stable economic environment," said CEO Rob Katz in a statement. With the stock busting through a new 52-week high today and trading at P/E of nearly 50, however, much of that turnaround talk might already be baked into the price.

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The article Why Vail Resorts Shares Popped originally appeared on Fool.com.

Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days.We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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