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Factors Setting the Tone for Vail Resorts (MTN) Q4 Earnings

Vail Resorts, Inc. MTN is scheduled to report fourth-quarter fiscal 2020 results on Sep 24, after the closing bell.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 40.1%.

Q4 Expectations

The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line is pegged at a loss of $3.56 per share. In the year-ago period, the company incurred a loss of $2.22 per share. For quarterly revenues, the consensus mark stands at $135.7 million, suggesting a decline of 44.4% from the prior-year reported figure.

Vail Resorts, Inc. Price and EPS Surprise Vail Resorts, Inc. Price and EPS Surprise

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

Factors to Note

Vail Resorts’ results in the quarter are likely to show the impact of the coronavirus pandemic. The negative travel environment and dismal visitation to the company’s resort properties are likely to get reflected in the to-be-reported quarter’s results. The Zacks Consensus Estimate for resort revenues is pegged at $133 million, indicating a decline of 45.5% year over year.

Moreover, rising expenses for operations and pertinent weather-related woes might have dented profitability. It is worth mentioning that Vail Resorts’ business is highly dependent on weather conditions. Particularly, the ski business is directly dependent on the extent and timing of snowfall. Unfavorable weather conditions are likely to have affected skiers’ visits. This, in turn, may have hurt the company’s revenues and profits.

However, continuous efforts on digital marketing and media advertising, and reopening of Ski resorts are likely to have boosted the to-be-reported quarter’s performance.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Vail Resorts this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.  

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Vail Resorts has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of +11.10%. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Penn National Gaming, Inc. PENN has a Zacks Rank #2 and an Earnings ESP of +31.25%.

Boyd Gaming Corporation BYD has a Zacks Rank #3 and an Earnings ESP of +215.01%.

Zynga Inc. ZNGA presently has a Zacks #3 and an Earnings ESP of +25.00%.

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