Vail Resorts Shares Gain After 3Q Earnings Beat

NEW YORK (AP) — Shares of Vail Resorts Inc. jumped Friday as a Barclays Capital analyst upgraded the ski resort operator to an "Overweight" rating following its better-than-expected third-quarter profit report.

Vail shares gained $1.60, or 5.6 percent, to $30.22 in afternoon trading. The stock has traded between $14.76 and $52 during the past 52 weeks.

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, as continued weakness in visits by out-of-state skiers drove down revenue.

In a note to investors, Barclays analyst Felicia Hendrix predicted that the Broomfield, Colo.-based company's performance will improve next year, driven by strong advance season pass sales, cost cutting efforts and the expected return of some out-of-state skiers.

For its full fiscal year, Vail said it continues to expect earnings to range from $41 million to $51 million. The company said season pass sales for the upcoming ski season were up 39 percent from last year as of May 31.

During the third quarter, total skier visits for the season to Vail, Beaver Creek, Keystone and Breckenridge in Colorado and Heavenly in California declined 9 percent 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.