Vail Resorts Shares Gain After 3Q Earnings Beat

NEW YORK (AP) — Shares of Vail Resorts Inc. jumped on Friday, one day after the ski resort operator reported a better-than-expected third-quarter profit despite continued weakness in visits by out-of-state skiers.

Vail shares gained $1.90, or 6.6 percent, to $30.52 in midday trading. The stock has traded between $14.76 and $52 during the past 52 weeks. The shares had slipped slightly on Thursday, closing less than 1 percent lower.

Early Thursday, Vail reported that its earnings dropped 29 percent for the quarter ended April 30 to $61.6 million, or $1.68 per share.

In a note to investors, Deutsche Bank analyst Chris Woronka said Vail "handily" beat Wall Street's expectations for the second quarter in a row on increased season pass traffic, sales of its new Epic Pass and less than expected margin erosion. He noted, however, that the impact of fewer out-of-state visitors hit the Broomfield, Colo.-based company hard during the ski season.

Total skier visits for the season to Vail, Beaver Creek, Keystone and Breckenridge in Colorado and Heavenly in California declined 9 percent during the quarter and lift ticket revenue fell 11 percent. However, a 26 percent surge in season pass revenue from regular, typically in-state skiers prevented steeper declines.