Vail Resorts Stock Slides After Q3 Earnings Bust
Vail Resorts Inc (MTN) stock dropped 3.5% to $132.45 after reporting Q3 earnings that met revenue expectations but missed on EPS, prompting a full-year outlook cut due to the worst winter in 40 years. Analysts slashed price targets, with Barclays lowering its forecast to $119, and bearish options activity surged as short interest retreated slightly to 20.9% of the float.
Vail Resorts Inc (MTN) shares fell 3.5% to $132.45 following its Q3 earnings report, which matched revenue forecasts at $1.21 billion but missed earnings per share at $0.88. The company cited its worst winter in 40 years as the reason for cutting its full-year outlook, triggering a market reaction despite prior gains. Analysts responded swiftly, with Barclays reducing its price target from $138 to $119—the lowest among 12 covering brokerages, eight of which now rate MTN as 'hold' or 'strong sell.' The average 12-month target of $151.09 remains 10% above Monday’s close, though resistance near $140 and the 200-day moving average has capped recent upside. Short interest declined by 4.5% to 20.9% of the float, equivalent to nine days of potential buying pressure. However, options traders displayed heightened bearishness, with a 50-day put/call volume ratio of 4.66 ranking in the top annual percentile at major exchanges like ISE, CBOE, and PHLX. The pullback follows three consecutive daily gains, but the earnings miss and outlook revision have weighed on sentiment. Revenue stability failed to offset concerns over profitability and seasonal challenges, leaving MTN’s year-to-date performance down 8.7%.
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