Vail Resorts stock falls 2% on weak pass sales despite Q4 beat

Investing.com -- Vail Resorts Inc (NYSE: MTN) reported fourth quarter results that exceeded analyst expectations, though shares fell 2% after hours on Monday as investors focused on declining season pass sales and challenging conditions ahead.

The ski resort operator posted a fourth quarter loss of $5.34 per share, beating the analyst estimate of $5.35. Revenue reached $278.1 million, surpassing the consensus estimate of $269.3 million and up 2.5% from $271.3 million in the prior year period.

For the full fiscal year 2026, net income attributable to Vail Resorts fell to $147.5 million from $280.0 million in the prior year, as historically poor weather conditions across the western U.S. impacted operations. Resort Reported EBITDA declined to $745.7 million from $844.1 million, including $11 million in one-time costs.

The company reported troubling trends in season pass sales for the upcoming 2026/2027 ski season, with unit sales through September 18 down approximately 12%, days sold down 10%, and sales dollars down 6% compared to the prior year period. Chief Executive Officer Rob Katz stated, "This past winter was one of the most challenging winters in history across the western U.S. for the ski industry, which negatively impacted financial performance for the year."

For fiscal 2027, Vail Resorts provided guidance of net income between $158 million and $233 million, with Resort Reported EBITDA expected in the range of $805 million to $865 million, including approximately $14 million of one-time costs. The midpoint of the EBITDA guidance of $835 million reflects a meaningful recovery from the weather-impacted fiscal 2026.

The company expects approximately $25 million of incremental efficiencies in fiscal 2027 from its resource efficiency transformation plan. The Board declared a quarterly dividend of $2.22 per share, payable October 27, 2026.

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